NZ expands PT Panin Bank stake in A$166 million deal

ANZ has continued its Asian expansion by increasing its stake in PT Panin Bank, a major player in the Indonesian market.
It has acquired a further 8.4% of Panin in a deal worth $US114 million ($A166 million), bringing its total interest in the company to 38.3%.
ANZ chief executive officer Asia Pacific Alex Thursby says the increase in ANZ’s shareholding reflects ANZ’s commitment to the partnership with Panin and to growth in Indonesia.
“Indonesia is a key market in ANZ’s growth strategy in Asia and Panin is one of ANZ’s longest standing and largest strategic partnerships in the region,” Mr Thursby says.
“This increased shareholding recognises the strong position of Panin and the opportunities offered by a well-run bank with strong management and underlying fundamentals that supports its business plan.”
The shares in Panin were acquired by ANZ off-market from institutional investors.
ANZ has been a shareholder in Panin, Indonesia’s seventh biggest bank, since 1999, and the two companies also have a joint venture, PT ANZ Panin Bank, that dates back to 1993.
ANZ chief executive Mike Smith has emphasised the importance of expanding into Asia to increase the bank’s profits.
The bank has made a goal of being a “super regional” bank in Asia by 2012, with the region contributing 20% of the group’s earnings.
Last October ANZ announced it would be expanding its Vietnam operation, establishing a head office in Sun City in Hanoi and at least four branches and transaction offices in Hanoi and Ho Chi Minh City, with more to come this year.
News of the Panin deal has had little effect on ANZ’s share price, which has fallen 32c to $A14.76 amid fears the ongoing US banking crisis will have a flow-on effect on Australian banks’ profitability.