BBTN - Acquisition of BVS, BBTN spends up to IDR1.6 tn

BBTN - Acquisition of BVS, BBTN spends up to IDR1.6 tn Bank Tabungan Negara (BBTN) acquired Bank Victoria Syariah (BVS). “Its value is approximately IDR1.5 tn to IDR1.6 tn," said BTN President Director Nixon L.P. Napitupulu. BBTN received one of the State Securities (SBN) owned by BVS. From the asset side, BBTN will take an equity loan from the company. Nixon explained the reason BBTN wanted to take SBN from BVS because it had a clear valuation. In this case, Nixon said the price of SBN could be determined just by looking at its series. “So they took the credit and the DPK, we didn't buy it," he added. Later, the business model will become BBTN Syariah and focus on home loans," he said. (Source : Kontan) Comment : The acquisition allows BTN to significantly expand its footprint in the rapidly growing sharia banking market. This aligns with the broader trend in Indonesia of increasing demand for sharia-compliant financial products. By focusing in home loan products, BTN Syariah will be able to take advantage of the increasing demand of sharia compliant mortgages. In conclusion, this acquisition is a strategic move by BTN to capitalize on the growth potential of the sharia banking sector while managing financial risks.