(6 April 2010 – Asia) Australia and New Zealand Banking Group has confirmed last week that it intends to increase the bank’s shareholding in two of its investments in South East Asia.The bank said in a statement that the two transactions, in Indonesia and Laos, would create a simpler structure for the investments.
The bank said that was in advanced discussions with PT Panin Bank Tnk (Panin Bank) to acquire an additional 14 percent interest in PT ANZ Panin Bank, an Indonesian joint venture currently 85 percent owned by ANZ.
The final agreement between ANZ and Panin Bank is still subject to Indonesian regulatory approval and would see ANZ increase its shareholding in the joint-venture bank from 85 percent to 99 percent for US$44 million (A$47 million).
Panin Bank would retain a 1 percent shareholding in PT ANZ Panin Bank.
In Laos, ANZ last week agreed to acquire the residual 10 percent interest in ANZ Vientiane Commercial Bank Limited (ANZV) from IFC (International Finance Corporation), a member of the World Bank Group, for US$2.5 million.
The transaction will see ANZV become a 100 percent owned subsidiary of ANZ.
ANZ’s CEO of Asia Pacific, Europe and America, Alex Thursby, said that the super regional strategy and the increasing scale of ANZ’s Asian business means it makes sense to take opportunities to simplify its business structure.
For example, in Indonesia ANZ expects to complete the acquisition of the Royal Bank of
Scotland’s (RBS) retail and commercial businesses in June 2010 and these businesses will become part of PT ANZ Panin Bank with additional capital, systems and managerial requirements, Mr Thursby added.
ANZ will be investing around US$100 million in capital in Indonesia this year as part of the completion of the RBS acquisition including the proposed increase in the bank’s shareholding in PT ANZ Panin Bank and to support organic growth, Mr Thursby highlighted.
Mr Thursby noted that the moves also highlight the importance of ANZ-branded businesses in Asia, including the priority markets of Indonesia and Greater Mekong, which includes Laos.