Indonesian commercial bank Bank Tabungan Negara (BTN) has announced the acquisition of Bank Victoria Syariah (BVIS) for approximately IDR 1.06 trillion ($65 million).
In this regard, state-owned BTN has entered into a Conditional Sale and Purchase Agreement (CSPA) with BVIS shareholders, including Victoria Investama, Bank Victoria International and BHP Jakarta.
Under the agreement, BTN will acquire all shares of BVIS from its current shareholders.
Victoria Investama currently owns 80.18% of BVIS, Bank Victoria International owns 19.8% and BHP Jakarta has 0.0016%.
BTN stated that the growth of the Sharia economy in Indonesia requires banking services that meet customers’ needs for Sharia-compliant financial transactions.
To support this and improve its Sharia banking offering, BTN recognizes the need to improve the service delivery of its Sharia business unit.
The acquisition of BVIS is part of BTN’s strategic business plan to separate its Sharia business unit, in line with regulatory requirements for conventional commercial banks to separate their Sharia business units.
BTN will spin off its existing Islamic banking arm BTN Syariah and merge it with BVIS to create a new Islamic bank.
BTN further said that the acquisition is also partly due to BVIS’s status as a Core Capital-Based Bank Group (KBMI) 1, which will simplify the business integration process.
The acquisition plan is subject to applicable laws and regulations, including those of the Ministry of Law and Human Rights, in particular with regard to the sale of shares registered under BHP Jakarta.
BTN wants to finance the proposed deal with internal resources.
BVIS was founded in 1966 as PT Bank Swaguna by notary Bebasa Daeng Lalo in Jakarta.
It focuses primarily on raising funds, providing financing and offering banking services based on Sharia principles.
“Indonesia’s BTN Closes Deal to Buy Bank Victoria Syariah” was originally created and published by Retail Banker International, a brand owned by GlobalData.
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