JAKARTA, RAKYAT NEWS – The sale of controlling shares in Bank Pan Indonesia Tbk (Panin Bank) is attracting the attention of major players in Southeast Asia’s financial sector. Prominent banks, Oversea-Chinese Banking Corporation (OCBC) of Singapore and CIMB of Malaysia, are now competing to gain control of Panin Bank.

Both OCBC and CIMB have submitted non-binding offers for the combined shares held by two main shareholders of Panin Bank: 39.22% owned by Australia and New Zealand Banking Group (ANZ) and 46.52% held by the Gunawan family, the founding family of the bank since 1971. The sale of these shares is not only strategically significant but also financially impactful, with an estimated combined value of over IDR 37 trillion (approximately USD 2.4 billion), based on Panin Bank’s recent closing share price of IDR 1,900 per share.

The interest in Panin Bank has caused its stock price to surge, rising nearly 5.73% during trading on December 10. By the end of that session, the shares were trading at IDR 2,030. The deadline for the non-binding offers is expected to fall later this month, with the sale process first reported in October.

Aside from OCBC and CIMB, other major financial institutions, including Malaysia’s Malayan Banking Bhd (Maybank), are reportedly working with advisors to prepare potential offers. Japanese banks, Mitsubishi UFJ Financial Group and Sumitomo Mitsui Banking Corp, are also said to be expressing interest in the Panin Bank shares.

Panin Bank’s diverse portfolio, which includes consumer financing and wealth management services, has made it an attractive target for large financial institutions looking to capitalize on Indonesia’s strong economic growth, the largest in Southeast Asia. In 2024, Panin Bank’s shares have increased by 58.3%, bringing the bank’s total market value to USD 2.84 billion.