ANZ considers $600 million sale

ANZ (ASX: ANZ) is said to be holding discussions with Japans Mizuho Financial Group for the sale of its 39.2% stake in Bank Pan Indonesia.

The company believes its stake of Indonesia’s seventh-largest bank is worth $668 million but was an inheritance of former management. However with new liquidity requirements enforced by the Australian Prudential Regulation Authority, CEO Mike Smith said the bank will review its stake in a number of small holdings. “The treatment under Basel III or under APRA’s definition of Basel III with regard to partnerships is something we have to look at”. Mr Smith said in April.

Since January 2012, the company has sold two minority stakes in Asian banks and funnelled the money back into its fully owned subsidiaries in China and other banks such as PT ANZ, a 99%-owned subsidiary that has experienced large revenue growth since ANZ began its Super Regional Strategy in 2007.

ANZ’s strategy of bringing competition to Asian banks is somewhat different to Westpac (ASX: WBC) or NAB’s (ASX: NAB) approach. While ANZ seeks to produce 25%-30% of revenues from its APEA division by 2017, its two Australian rivals are happy to take advantage of trade flows to and from Australia.

Foolish takeaway

Currently, this Fool thinks that Aussie banks are overpriced and investors could find higher growth and better yield ideas outside the top 20 ASX stocks.

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Motley Fool contributor Owen Raszkiewicz owns shares in Cochlear, Challenger and Leighton Holdings.  

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