BBTN - Reportedly cancelled acquisition of Muamalat

BBTN - Reportedly cancelled acquisition of Muamalat See the Explanation Rumours regarding the cancellation of the acquisition of Bank Muamalat Indonesia by Bank Tabungan Negara (BBTN) are increasingly circulating. It was reported that the two of them had difficulty reaching an agreement, so they chose to continue with their respective agendas. A price agreement may not be reached due to BPKH's position as manager of Hajj funds. According to the rules, BPKH investments cannot produce negative returns (losses). Muamalat's current valuation may already be below BPKH's initial investment value. So, if Muamalat is sold at its current fair price, it could create losses for BPKH, which could give rise to new problems (legal problems) in the future. (Source : Kontan) Comment : We believe the cancellation on the acquisition process will not significantly impact to overall BBTN sharia unit. The bank still have the obligation to spin off its sharia unit and we expect it will turned into reality soon. Maintain BUY GGM TP IDR1,770 (0.6x ‘24F P/B).