Sources told Reuters that Japanese bank Mizuho Financial Group Inc offered to purchase a 39.2% stake in PT Bank Pan Indonesia (Panin). The stake is owned by the Australia and New Zealand Banking Group (ANZ). The stake was reportedly valued at USD 570 million. Mizuho made the move in a bid to expand its operations in Southeast Asia. The bank is Japan's second largest in terms of its assets. Mizuho Financial, however, has fallen behind its fellow Japanese banks in building its footprint in the region.
The sources said the approach was made last month and that talks have just started. Whether the discussions would result to a sale, it was not yet clear. Earlier, Chief Executive Officer Mike Smith of ANZ had said that the bank would consider disposing some of the stakes it holds in Asian banks as Australian regulators proposed new capital rules. Regulators had proposed that banks holding minority stakes in Asian banks would be required to have more capital.
Bell Potter Securities Senior Banking Analyst T.S. Lim said that if ANZ should sell its Bank Panin stake, it should aim for its carrying value worth AUD 668 million or USD 613 million.
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