ANZ Considering Selling Panin Bank Stake

ANZ is said to be considering selling its stake in Panin Bank, an Indonesian lender. The deal, if it will push through, could go up to as much as $600 Million.

As Reuters reported the other day, the Mizuho Financial Group from Japan made a request from the ANZ to buy about 39% stake of the Indonesian company’s operations. New rules regarding capital, which has made minority partnerships more expensive, had prompted the Japan company to initiate this arrangement. States from overseas lender is now treated as capital intensive.

No one from the ANZ would confirm this report, but Mike Smith, the company’s chief executive, has said sometime in April that ANZ was willing to sell stakes for the right price. Mr. Smith also said that he would look into minority holdings further.

Lat year, ANZ sold its stake to Sacombank, a Vietnamese lending company .

An analyst sees that ANZ may likely sell its state to Indonesia, while other big banks will do the same for its foreign minority holdings.

The deal, however, will not mean ANZ exiting the Indian market. The company has over 28 branches and a thousand employees in the country currently.