Mizuho makes bid for Indonesia’s PaninBank

Will buy ANZ’s 39.2% stake in the Indonesian bank.

Mizuho Financial Group Inc has approached Australia and New Zealand Banking Group Ltd to buy ANZ's stake in PT Bank Pan Indonesia Tbk or PaninBank valued at some US$570 million.

Analysts said Mizuho approached ANZ last month. Discussions are at an early stage and it remains unclear if the talks will result in a transaction.

ANZ and Mizuho declined to comment on the proposed deal, however. PaninBank officials were also not immediately available for comment.

ANZ Chief Executive Mike Smith recently said he would be open to selling some Asian bank stakes because of new capital rules proposed by Australian regulators.

Moody's Investors Service said last month it does not expect ANZ to support PaninBank due to reduced chances of getting eventual control since ANZ's stake is already close to Indonesia's new banking ownership limits. Indonesia has a 40% cap on single ownership in its local banks.

A successful deal will help Mizuho catch up with top Japanese lender Mitsubishi UFJ Financial Group Inc and No. 3 Sumitomo Mitsui Financial Group Inc (SMFG).