DBS Group has emerged as the leading contender to acquire a controlling stake in Indonesia’s Panin Bank, according to people familiar with the matter, as the Singaporean bank progresses through the second round of bidding.
The potential deal involves a sale of roughly 86% of Panin Bank, the country’s 12th largest lender.
The stake is held by Australia’s ANZ Group and the founding Gunawan family and was valued at around US$1.8 billion at Tuesday’s market close.
Reuters reported that DBS is currently ahead of Malaysia’s CIMB Group in the bidding process.
ANZ, which owns 39% of Panin Bank based on LSEG data, has been looking to exit the investment since 2013.
The Gunawan family is said to be flexible about how much of its stake it might sell, depending on the offer valuation.
Binding bids are expected by late April or early May, though the timeline may shift based on market conditions.
Sources noted that bidder strategies could still evolve. All sources declined to be identified as the discussions are private.
DBS, ANZ and CIMB have not commented on the matter. Panin Bank President Director Herwidayatmo, when contacted, referred Reuters to the bank’s controlling shareholders.
If the acquisition proceeds, it would mark the first major deal under incoming DBS CEO Tan Su Shan, who will assume the role on 28 March.
Tan told Reuters the bank remains open to bolt-on acquisitions that align strategically and contribute to earnings within a reasonable timeframe.
Analysts believe a successful bid would significantly expand DBS’s footprint in Indonesia, potentially placing it among the country’s top ten banks.
DBS currently operates 34 offices through its Indonesian unit, PT Bank DBS Indonesia, with over 3,000 employees across 15 cities.
Founded in 1971 by Mu’min Ali Gunawan and listed in Jakarta since 1982, Panin Bank operates across consumer finance and private wealth.
Previous interest in the stake was also shown by Singapore’s OCBC and Japan’s Sumitomo Mitsui, sources said.
Panin Bank reported an 8.2% rise in net profit last year to US$165 million, supported by stronger interest income and lower bad loan provisions.
Featured image credit: Edited from Freepik
