DBS Eyes $1.8B Stake in Panin Bank to Expand Indonesia Presence

DBS Group (OTC:DBSDY), Southeast Asia’s largest bank by assets, is leading the race to acquire a controlling stake in Indonesia’s Panin Bank, according to sources familiar with the matter. Singapore-based DBS is competing with Malaysia’s CIMB Group in the second round of bidding. Approximately 86% of Panin Bank—Indonesia’s 12th largest lender—is up for sale, with the combined stake of Australia’s ANZ (39%) and the founding Gunawan family valued at around $1.8 billion as of Tuesday’s market close.

ANZ has been seeking to offload its stake since 2013, while the Gunawan family is reportedly flexible on how much it would sell, depending on offer prices. Binding bids are expected by late April or early May, although the timeline could shift depending on market conditions. DBS, ANZ, CIMB, and Panin Bank declined to comment on the matter.

If successful, this acquisition would mark the first major deal under DBS’s incoming CEO, Tan Su Shan, who assumes the role on March 28. Tan recently stated that DBS is open to strategic acquisitions that offer long-term value and are earnings accretive within a reasonable timeframe.

Analysts believe acquiring Panin Bank would catapult DBS into the ranks of Indonesia’s top 10 lenders. DBS already operates in Indonesia through PT Bank DBS Indonesia, which runs 34 offices across 15 cities with over 3,000 employees.

Founded in 1971, Panin Bank offers services ranging from consumer financing to private wealth. The bank’s net profit rose 8.2% to 2.74 trillion rupiah ($165 million) last year, driven by higher interest income and reduced provisions for bad debt. Despite this, its shares have dropped about 20% this year amid broader concerns over Indonesia’s fiscal outlook.