Panin Bank gets ANZ assistance

Panin Bank gets ANZ assistance

SYDNEY (Dow Jones): Australia & New Zealand Banking Group Ltd. (ANZ) said Monday it has entered a technical services agreement with PT Panin Bank of Indonesia.

ANZ said in a statement that under the agreement, it will provide support to Panin Bank in a number of areas, including human resources, information technology, international trade and risk management.

The two banks have a joint venture in Indonesia known as PT ANZ Panin Bank, which dates from 1993.

ANZ also holds 4.9 percent of the ordinary shares in Panin Bank, which it bought for US$3 million and has options to buy a further 19.5 percent of its partner, which it described as Indonesia's ninth largest private commercial bank.

Panin said last week that it was negotiating with foreign banks with a view to having a strategic alliance with one.

In its statement Monday, ANZ noted that Panin, which has a market capitalization around $100 million, "is one of Indonesia's strongest and more conservatively managed banks."

A spokesman for ANZ said the options over the 19.5 percent stake were bought from private investors outside of Indonesia, and expire in mid-December, although this date can be extended.

The price of the Panin shares under the options agreement would be "consistent with recent market prices," he said.

Asked about ANZ's plans for its Panin stake, he said: "We wouldn't go around purchasing options if we had no intention of exercising them.

In the statement from ANZ, Chief Executive John McFarlane said the Australian bank believes that Panin is "well positioned to play an important role in the development of a healthier and leaner Indonesian banking system."