Heaptalk, Jakarta — Bank Tabungan Negara (BTN) has officially acquired Bank Victoria Syariah (BVIS) (01/20) as part of its plan to establish a new Islamic commercial bank through an inorganic strategy.
After obtaining regulatory approval, the company will separate its Sharia business unit, BTN Syariah, and integrate it into BVIS to create a new Islamic commercial bank. Representatives of both parties signed the Conditional Sales Purchase Agreement (CSPA) in Jakarta on Wednesday (01/15).
In the agreement, BTN will take over 100% of BVIS shares from its shareholders, namely PT Victoria Investama Tbk, PT Bank Victoria International Tbk, and Jakarta Heritage Hall (BHP). According to the Summary of the Acquisition Plan published by both parties, Victoria Investama is the majority shareholder of BVIS with an 80.18% stake, followed by Bank Victoria International with a 19.80% stake, and BHP Jakarta with 0.0016%.
Through this acquisition, BTN will own Bank Victoria Syariah, holding up to 100% of the total fully paid-in capital in BVIS, which has a nominal value of Rp1.06 trillion. BTN is executing the purchase of BVIS with internal funding prepared according to the bank’s business plan.
Following govt mandate
“BTN believes that the development of the Islamic economy in Indonesia needs to be supported by players with competitive advantages and comprehensive banking and financial service propositions for the housing sector. This corporate action will support the development of BTN Syariah to fulfill this role and meet customers’ needs in the sharia market,” said Nixon L.P. Napitupulu, President Director of BTN (01/20).
Nixon admitted that the company acquired an Islamic commercial bank and merged it with BTN Syariah since the procedure was straightforward and not time-consuming. This action follows government regulations and legislation that mandate conventional banks with Islamic banking subsidiaries to promptly spin off their Sharia business units before 2026.
As of Q3 2024, BTN Syariah’s assets were Rp58 trillion, growing by 19.2% year-on-year (YoY) from Rp48 trillion in the same period last year. Based on the company’s projections, the value of this unit’s assets after becoming an Islamic commercial bank could reach around Rp66 trillion to Rp67 trillion.
Meanwhile, Bank Victoria Syariah is considered a suitable candidate due to its size as an Islamic commercial bank and its continually growing business. According to its financial report as of Q3 2024, Bank Victoria Syariah’s assets reached Rp3.32 trillion, increasing by 8.02% YoY from Rp3.08 trillion in the same period last year.
Nixon hopes that the entire acquisition process can be completed before the end of the first semester of 2025 so that the merger process between BTN’s Sharia Business Unit and BVIS can proceed. “Based on our planned timeline, BTN Syariah can soon spin off to become an Islamic commercial bank this year,” Nixon concluded.
