BTN Initiates Acquisition Process of Bank Victoria Syariah
In a significant move within the banking sector, PT Bank Tabungan Negara (Persero) Tbk (BTN) has commenced the acquisition process of a sharia commercial bank, PT Bank Victoria Syariah (BVIS). The acquisition was set in motion after BTN signed a Conditional Sales Purchase Agreement (CSPA) with BVIS shareholders in Jakarta on Wednesday, January 15, 2025.
Acquisition Details and Ownership
Under the agreement, BTN will acquire 100% of BVIS shares from its existing shareholders, namely PT Victoria Investama Tbk, PT Bank Victoria International Tbk, and Balai Harta Peninggalan (BHP) Jakarta. As per the Acquisition Draft Summary released by both parties, Victoria Investama holds the majority of BVIS shares with an 80.18% stake, followed by Bank Victoria International at 19.80% and BHP Jakarta at 0.0016%.
Through this acquisition, BTN will become the sole proprietor of Bank Victoria Syariah, holding up to 100% of the shares with a total nominal value of Rp1.06 trillion.
Strategic Business Move and Regulatory Approval
BTN’s CEO Nixon LP Napitupulu expressed that the acquisition of BVIS forms part of BTN’s strategy to establish a sharia commercial bank (BUS) through an inorganic approach. The internal funding for this purchase aligns with the bank’s business plan.
After obtaining regulatory approval for the acquisition plan, BTN aims to separate its Sharia Business Unit (UUS), BTN Syariah, and merge it with BVIS to create a new BUS. This strategic decision is driven by the need to enhance the Islamic economy in Indonesia by strengthening competitive players in the banking sector, offering comprehensive banking and financial services for the housing sector.
Legal Compliance and Future Plans
The decision to acquire a sharia commercial bank and integrate it with BTN Syariah was made after a thorough due diligence process conducted over several months. Nixon highlighted that this strategy is straightforward and time-efficient due to legal requirements mandating the separation of sharia units from conventional parent banks before 2026.
In accordance with Sharia Banking Law No. 21 of 2008, combined with Financial Sector Development and Strengthening Law No. 4 of 2023 and Financial Services Authority Regulation No. 12 of 2023, Sharia Business Units must be separated from their conventional parent banks if their assets reach 50% of the parent’s total assets or at least Rp50 trillion. This separation must occur within two years after the last quarterly financial report indicates compliance.
By the third quarter of 2024, BTN Syariah reported assets worth Rp58 trillion, reflecting a 19.2% year-on-year growth from the previous year’s Rp48 trillion.
**Conclusion:**
The acquisition of Bank Victoria Syariah by BTN marks a strategic move in the banking industry, aiming to enhance the Islamic financial sector’s competitiveness and cater to the evolving needs of customers in the sharia market. This acquisition not only aligns with BTN’s long-term business strategy but also ensures compliance with regulatory requirements, setting the stage for a new era in sharia banking in Indonesia.
