BBTN - Victoria Syariah acquisition, awaiting GMS approval in Mar25

BBTN - Victoria Syariah acquisition, awaiting GMS approval in Mar25 Bank Tabungan Negara (BBTN) is poised to significantly enhance its presence in the Sharia banking sector through the acquisition of Bank Victoria Syariah. The acquisition, currently underway, awaits final approval from the upcoming General Meeting of Shareholders. Following GMS approval, expected between April and May, BTN will establish a new, independent Sharia banking entity. This strategic move will position BTN as a key player in the Sharia banking market, complementing Bank Syariah Indonesia (BRIS). The focus of BTN Syariah will remain on mortgage financing, leveraging BTN's core strengths. This announcement effectively addresses recent speculation regarding a renewed acquisition offer from Bank Muamalat Indonesia. Concurrently, BTN is preparing a new name for the spun-off Sharia business unit, subject to government approval. "The focus of BTN Syariah will remain on mortgage financing, aligning with our core strengths and effectively complementing BSI's market position," Nixon stated. He further emphasized that healthy competition within the Sharia banking sector is expected to drive innovation and enhance service offerings for customers. (Source : Kontan) Comment : The acquisition will enable BTN to expand its sharia banking product offerings and enhance its service capabilities. The successful acquisition and spin-off will solidify BTN’s position as a key player in the growing sharia banking sector. The focus on mortgage financing, a key strength of BTN, will be a cornerstone of the new entity’s growth strategy. Maintain BUY, GGM-based TP of IDR1,530 (0.5x ’25 P/B).