BBVA, Fubon Consider Bids for ANZ’s $614 Million Panin Stake

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Spanish lender Banco Bilbao Vizcaya Argentaria SA and Taiwan’s Fubon Financial Holding Co. are weighing bids for a 39 percent stake in PT Bank Pan Indonesia, people with knowledge of the matter said.

They join Mizuho Financial Group Inc. in considering offers by the end of this month for the Bank Panin stake being sold by Australia & New Zealand Banking Group Ltd., the people said, asking not to be identified as the process is private. ANZ’s holdings in the Jakarta-based lender are worth about 8.78 trillion rupiah ($608 million) based on the current share price, data compiled by Bloomberg show.

ANZ is seeking to sell the Bank Panin stake after Australian regulators introduced rules in 2013 requiring banks to subtract the entire value of overseas minority investments from Tier 1 capital. Since the beginning of August, the Melbourne-based lender has raised A$3.2 billion ($2.3 billion) selling shares as it seeks to shore up capital.

A possible hurdle to the Indonesia sale is whether Bank Panin’s controlling Gunawan family would allow the new investor to have a board seat, according to the people. ANZ has held on-and-off discussions to sell the stake to Mizuho for at least two years, the people said.

Shares of Panin, which has a market value of $1.56 billion, have declined 20 percent this year as Indonesia scales back its forecasts for economic growth. Spokesmen for ANZ, Bank Panin, BBVA, Fubon and Mizuho declined to comment.

BBVA opened an Indonesia office in August last year, becoming the only Spanish financial institution in the country, and offers products focused on capital-markets activities and trade finance, according to its website.

Fubon is looking for acquisition opportunities in Southeast Asia, as Taiwan’s financial regulator encourages the creation of a regional champion, the Taipei Times reported in March, citing comments made by President Vivien Hsu at an investor conference.

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