national financial institution PT Bank Tabungan Negara (BTN) plans to acquire Islamic commercial bank PT Bank Victoria Syariah (BVIS).
A conditional purchase and sale agreement has been signed, paving the way for BTN to acquire 100% of BVIS shares from existing shareholders PT Victoria Investama Tbk (80.18%), PT Bank Victoria International Tbk (19.80%) and Balai Harta Peningagalan (BHP) was held. ) Jakarta (0.0016%).
The acquisition will see BTN merge its Islamic business unit (BTN Syariah) with BVIS to create a new independent Islamic bank.
The move is in line with regulations mandating the separation of Islamic business units from conventional banks if their assets reach 50% of the parent bank’s total assets or exceed Rp50 trillion.
This separation must occur within two years of meeting these criteria.
BTN Sharia’s assets have already reached IDR 58 trillion, an increase of 19.2% year-on-year, and are expected to reach IDR 66-67 trillion after the spin-off.
BTN President Director Nixon LP Napitupulu explained that acquiring BVIS provides a streamlined path to comply with these regulations.
BVIS was selected not only for its appropriate size and favorable growth trajectory, but also because it is already well established as a comprehensive Islamic bank.
As of the third quarter of 2024, BVIS’ assets reached Rp 3.32 trillion, an increase of 8.02% year-on-year.
The acquisition is being funded by BTN’s internal resources and is subject to approval from the shareholders of both banks and the Financial Services Authority (OJK).
BTN aims to complete the process by the end of the first half of 2025.
The newly established Islamic bank will operate as a limited liability company (PT), further strengthening its independence.
BTN Shariah will continue to operate as usual until the legal and formal transition to the new Islamic bank is completed.
“BTN assesses that the development of the Shariah economy in Indonesia needs to be supported by players with a competitive advantage or competitive advantage with a comprehensive banking and financial services proposition for the housing sector.
This corporate activity will support the development of BTN Shariah in order to fulfill this position and meet the needs of customers in the Shariah market. Both parties, namely BTN and Victoria Sharia Bank shareholders, have reached a mutual agreement to support this initiative. ”
Nixon said.
Featured image credit: Edited from BTN
