Mizuho Financial Group has approached Australia and New Zealand Banking Group (ANZ) to buy ANZ’s 39.2 per cent stake in PT Bank Pan Indonesia Tbk (Panin) valued around $570 million, sources told Reuters, as the Japanese bank seeks to step up its Southeast Asian expansion.
Mizuho, Japan’s second-biggest bank by assets, made the approach to ANZ last month and the discussions are at an early stage, one of the sources told Reuters. It was unclear whether the talks would result in a transaction.
The discussions come as Mizuho tries to build its footprint in Southeast Asia, where it lags its Japanese rivals in expanding in the fast-growing region. ANZ Chief Executive Mike Smith said previously that he would be open to selling some Asian bank stakes in the wake of new capital rules proposed by Australian regulators.
ANZ has been the most aggressive of Australia’s top four banks to push into Asia, investing in 15 countries in the region from Malaysia to China. Many of ANZ’s Asian bank stakes are minority holdings and it therefore would be required to hold more capital under Australia’s proposed regulations.
“The carrying value is around A$668 million (HK$4.8 billion) and ANZ should be aiming for this if it were to sell the stake,” said Sydney-based T.S. Lim, a senior banking analyst at Bell Potter Securities.
“The upside would then be an improved Tier 1 by half of that amount that could free up capital to be returned to shareholders. It also enables ANZ to grow organically and have a focus more consistent with its institutional/commercial ambitions,” he added.