Broker notes that a sale is attractive, given the scarcity of such deals and Jakarta-listed bank’s status as a mid-sized lender with total assets of S$19.4 billion
A FULL takeover of Bank Pan Indonesia could add 2 to 3 per cent to the bottom line of DBS or OCBC, said RHB in a report on Friday (Dec 13).
The broker noted that the impact would be on the profit after tax, excluding minority interest for the Singapore lenders in the 2025 fiscal year.
DBS and OCBC are said to be among the Asian banks interested in buying the Jakarta-listed lender, which is also known as Panin Bank. Others reportedly include Malaysia’s CIMB, as well as Japan’s Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group.
Bloomberg News reported in September that ANZ Group Holdings was considering reviving a sale of its 38.8 per cent stake in Panin Bank as part of its strategy to reduce positions in some long-held Asian assets. According to the report, Indonesia’s Gunawan family, which controls 46 per cent of Panin Bank, is also ready to consider joining a sale for the right price.
However, RHB added that the impact to DBS and OCBC “could be smaller, given (the) uncertainties surrounding the Gunawan family’s plans for its stake”.
It is also “not particularly cheap”, given that Panin Bank’s share price has risen 61 per cent this year amid expectations of a change in its major shareholder. This means the stock is trading at 0.9 times the price-to-book value for September, RHB said.
Still, the broker noted that the sale is attractive, given the scarcity of such deals and Panin Bank’s status as a mid-sized lender with total assets of S$19.4 billion.
An OCBC-Panin Bank merger would hoist the enlarged group to fifth position in Indonesia, from OCBC’s eighth place currently, said RHB.
It assessed that an acquisition would also propel DBS into the top 10, from its present high-teens ranking.
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