BBTN - BTN syariah ready for spin-off after victoria syariah acquisition

BBTN - BTN syariah ready for spin-off after victoria syariah acquisition Bank Tabungan Negara (BBTN) has revealed the progress of its acquisition of Bank Victoria Syariah (BVIS), as part of the spin-off of BTN Syariah’s Sharia Business Unit (UUS). Nixon LP Napitupulu, President Director of BBTN, stated that the acquisition process is now only awaiting the decision of the General Meeting of Shareholders (GMS), which is scheduled for March 2025. In writing, approval from the Ministry of State-Owned Enterprises has been granted, and the prospective buyer has also agreed. We are just waiting for the formal decision at the GMS, he said. After receiving the GMS approval, BBTN will sign the Sales and Purchase Agreement (SPA) with BVIS. The spin-off process of BTN Syariah is expected to take place between April and May 2025, during which all BTN Syariah assets will be transferred to BVIS. Once the acquisition is complete, BTN Syariah will be renamed, and we will propose the new name to the government. It cannot be announced yet because BVIS is still owned by another party, he explained. (Source : Idn Financials) Comment : We anticipate a substantial impact from this acquisition. The establishment of BBTN Syariah as a distinct entity will empower the bank to effectively capitalize on the substantial and largely untapped growth potential within the Indonesian Islamic banking sector. Furthermore, we believe this corporate action will position BBTN Syariah as a significant player in the Islamic banking landscape, enabling it to compete effectively with industry leader, Bank Syariah Indonesia (BSI). The presence of BBTN Syariah will also be instrumental in fostering a more comprehensive and competitive Islamic banking ecosystem within Indonesia. Maintain BUY, GGM-based TP of IDR1,530 (0.5x ‘25F P/B).