Indonesian commercial bank Bank Tabungan Negara (BTN) has announced the acquisition of Bank Victoria Syariah (BVIS) for approximately IDR1.06tn ($65m).
In this regard, state-owned BTN sealed a conditional sale and purchase agreement (CSPA) with BVIS shareholders, including Victoria Investama, Bank Victoria International, and BHP Jakarta.
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Under the agreement, BTN will acquire all of BVIS’s shares from its current shareholders.
Victoria Investama currently holds 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 customer needs for sharia-compliant financial transactions.
To support this and improve its sharia banking offerings, BTN recognises the need to enhance the services provided by its sharia business unit.
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By GlobalDataThe acquisition of BVIS is part of BTN’s corporate strategic plan to separate its sharia business unit, in line with the regulatory requirements for conventional commercial banks to separate their sharia business units.
It will see BTN spinning off its existing Islamic banking arm BTN Syariah and merging it with BVIS to set up 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 takeover plan is subject to applicable laws and regulations, including those from the Ministry of Law and Human Rights, particularly concerning the sale of shares registered under BHP Jakarta.
BTN looks to finance the proposed deal using internal funds.
BVIS was founded as PT Bank Swaguna in 1966 by Notary Bebasa Daeng Lalo in Jakarta.
It primarily focuses on raising funds, providing financing, and offering banking services based on sharia principles.
