The proposed sale of a controlling stake in Indonesia’s Bank Pan Indonesia Tbk (Panin Bank) has encountered a setback, with discussions between the sellers and potential buyers faltering due to a divergence in valuation expectations, according to three individuals familiar with the matter.
The stake, jointly owned by Australia and New Zealand Banking Group (ANZ) and Indonesia’s Gunawan family, comprises approximately 86% of the Jakarta-listed lender. Based on Panin Bank’s share price of 1,140 rupiah as of Friday, the combined holding is valued at roughly USD 1.45 billion.
The Gunawan family, which holds around 46.5% of the bank, is reportedly open to divesting part of its interest. ANZ controls a 39.2% stake. Both parties launched a formal sale process last year, seeking to offload their joint holdings as part of ANZ’s broader strategic retreat from low-return operations across Asia, including retail and wealth segments.
Panin Bank, founded by Mu’min Ali Gunawan in 1971 and listed in 1982, operates across consumer finance and private wealth services.
Earlier in 2025, regional banking giants such as CIMB Group and DBS Group expressed preliminary interest in acquiring the stake. However, neither party submitted binding offers, with the valuation mismatch proving a major impediment, sources said.
One of the sources indicated that the sellers were targeting a valuation exceeding twice Panin Bank’s current price-to-book ratio. As of the first quarter ending March 2025, the bank traded at approximately 0.75 times book value, according to LSEG data.
The process, managed by Citigroup, may be revived if both sides can bridge the pricing gap. Notably, CIMB remains open to further discussions, one of the individuals added.
Representatives from ANZ, Citi, and DBS declined to comment on the matter. A spokesperson for Panin Bank, President Director Herwidayatmo, clarified that management is not involved in the sale and referred enquiries to the shareholders. The Gunawan family could not be reached for comment. CIMB has yet to respond to a request for comment.
-Reuters
