Jakarta. State-owned Bank Tabungan Negara (IDX: BBTN) has officially started the process of acquiring Bank Victoria Syariah (BVIS) for an estimated Rp 1.06 trillion ($65 million), a move aimed at strengthening its position in the Islamic banking sector.

BTN’s President Director, Nixon L.P. Napitupulu, announced that the bank had signed a Conditional Sale and Purchase Agreement (CSPA) with the shareholders of BVIS, including Victoria Investama, Bank Victoria International, and Balai Harta Peninggalan (BHP) Jakarta.

As per the agreement, BTN will acquire 100 percent of BVIS’s shares from its current shareholders, making the transaction a full takeover. This acquisition is part of BTN’s strategy to form a fully-fledged Islamic commercial bank through inorganic growth.

Once regulatory approvals are granted, BTN plans to separate its existing Islamic banking unit, BTN Syariah, and integrate it with BVIS to create a new Islamic commercial bank.

"This disclosure is part of our acquisition plan for Bank Victoria Syariah, which will serve as the vehicle for BTN Syariah," Nixon explained at the Jakarta International Expo on Monday.

Following the signing of the CSPA, BTN, as the acquiring party, will proceed with the next steps, including securing approval from the shareholders of both BTN and BVIS. Additionally, the transaction will require approval from the Financial Services Authority (OJK) for BTN as the prospective controlling shareholder and for the acquisition itself.

Nixon expressed optimism that the entire acquisition process would be completed before the end of the first half of 2025, allowing the merger between BTN’s Islamic banking unit and BVIS to take place.

“We expect the entire process to be completed on schedule unless there are unforeseen obstacles. We hope to finish everything by the first half of 2025,” Nixon said.

According to the Summary of Acquisition Plan made public by both parties, Victoria Investama holds the majority stake in BVIS, owning 80.18 percent of the shares. Bank Victoria International owns 19.8 percent, and BHP Jakarta holds 0.0016 percent.

Through this acquisition, BTN will become the sole owner of Bank Victoria Syariah, holding 100 percent of BVIS’s shares, valued at approximately Rp 1.06 trillion in fully paid-up capital.

BTN will finance the acquisition using internal funds, as outlined in the bank’s business plan.