Japan’s Sumitomo Mitsui Financial Group (SMFG) is reportedly considering a bid for Jakarta-based lender PT Bank Pan Indonesia, better known as Panin Bank, Bloomberg reported on Monday, citing people familiar with the matter.
The Tokyo-based firm is competing against other potential buyers, including Mitsubishi UFJ Financial Group Inc (MUFG), to acquire a controlling stake in Panin Bank.
No financial decision has been made but MUFG is still seen as the strongest competitor, the report says. MUFG could propose merging Panin Bank with local unit PT Bank Danamon Indonesia as part of the deal.
Panin Bank is owned by the Gunawan family, which has a 46% stake in the company, while Australia and New Zealand Banking Group Ltd, or ANZ, owns about 38.8% of the stake. They are working with their respective advisors as they explore a potential sale of their shares, according to the report. Other regional lenders and local investors have also expressed interest.
Panin Bank shares have nearly doubled this year. The company has a market cap of around IDR 38.86 trillion ($2.6 billion).
Representatives of Panin Bank, SMFG and MUFG declined to comment on the report.
SMFG is a holding company of Sumitomo Mitsui Banking Corporation (SMBC), one of the largest banks in Japan that owns Jakarta-based PT Bank BTPN. SMBC acquired the Indonesian lender in 2013.
Earlier in August, DealStreetAsia reported that SMBC participated in RootAnt’s $4.5-million Series A2 funding round. SMBC invested about $1 million in the Singapore-based fintech firm. In June, SMFG was reportedly in talks to acquire 10% of SBI Holdings in a deal likely worth about $443 million.