PT Bank Maspion Indonesia (BMAS) is on track for significant growth following its acquisition of a controlling stake by Thailand’s second-largest bank, KBank.
The move opens up possibilities for corporate actions such as mergers and acquisitions (M&A) within Indonesia’s banking sector.
KBank aims to strengthen Bank Maspion’s position, targeting entry into the ranks of Indonesia’s top 15 banks within the next five to six years.
In a press conference held in Jakarta on Thursday, December 12, 2024, Chat Luangarpa, Executive Vice President of KBank and President Commissioner of Bank Maspion, confirmed that the bank remains open to exploring further M&A opportunities in the region.
However, he also noted that as a publicly listed company, KBank could not disclose specific details about potential transactions at this stage.
The announcement came in response to inquiries about KBank’s interest in acquiring shares of PT Bank Panin Tbk (PNBN).
Rumors have been circulating that international banking giants, such as Singapore’s Oversea-Chinese Banking Corporation (OCBC) and Malaysia’s CIMB, are eyeing a controlling stake in Bank Panin, which is currently largely owned by the Gunawan family and ANZ.
According to sources cited by Reuters, OCBC and CIMB have made non-binding offers for the combined shares owned by the two major stakeholders of Bank Panin.
The total value of these shares, which represent a 39.22 percent stake by ANZ and 46.52 percent held by the Gunawan family, is estimated to exceed Rp37 trillion US$2.4 billion), based on the closing stock price of Rp1,900 per share on Monday, December 9, 2024.
ANZ has been trying to divest its stake in Bank Panin since 2013, but the deal has faced valuation challenges. The Australian bank originally acquired a 29 percent stake in 1999 and gradually increased its ownership.
Previous attempts to sell the stake, including a 2023 auction, attracted interest from Japanese banks like Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group, but no agreement was reached.
The sale is part of ANZ’s broader strategy to reduce exposure to low-yield businesses, particularly retail and wealth banking in Asia, as the bank seeks to enhance its return on equity.
Despite these developments, Bank Panin’s management has denied rumors that it is in negotiations with Maybank Bhd from Malaysia. The company maintains that such reports were not authorized by the bank.
As KBank moves forward with its investment in Bank Maspion, the Indonesian banking sector continues to attract international attention, signaling potential changes in the competitive landscape.
