Sumitomo Aims for Panin Bank, a Bid to Expand Digital Bank Business

Japan-based bank conglomerate Sumitomo Mitsui Financial Group Inc is considering acquiring shares in PT Bank Pan Indonesia Tbk (PNBN). Bloomberg News reported that this acquisition is part of Sumitomo's efforts to expand its business in Southeast Asia.

Sumitomo Mitsui will likely rival Mitsubishi UFJ Financial Group Inc (MUFG) to bid for a controlling stake in Panin Bank. The Tokyo-based companies are among those working with consultants and conducting due diligence to consider the binding bids.

While the acquisition considerations are ongoing and no final decision has been made, MUFG is still the strongest contender. Another source stated that other regional banks and local investors have also expressed initial interest in acquiring Panin Bank.

However, Panin Bank President Director Herwidayatmo refused to comment on the acquisition news. Instead, he asked the media to ask the shareholders directly. "Please contact the controlling shareholder of PaninBank, which owns more than 25 percent stake in the bank, PT Panin Financial Tbk and Votraint [ANZ]," he said.