BTN to Spin off Sharia Unit, Eyes Acquisition of Another Bank

PT Bank Tabungan Negara Tbk (BBTN) plans to acquire an Indonesian-based Islamic bank, marking a pivotal step in the company's plan following the separation of its Sharia business unit (UUS) through a spin-off.

"We are currently in talks over the pricing details with the bank in question, though we cannot disclose the bank's name," BTN President Director Nixon L.P. Napitupulu said during BTN mass mortgage contract signing on Tuesday.

Nixon elaborated that the targeted Islamic bank, once acquired, will be seamlessly merged into BTN Syariah, currently functioning as a business unit.

This integration facilitates the streamlined transformation of BTN's Sharia business unit into an independent subsidiary. He highlighted that this method expedites the separation process compared to establishing an entirely new banking entity.

Following the completion of the acquisition and merger phases, PT Bank Syariah Indonesia Tbk (BSI) will become a shareholder. Notably, BTN Syariah was previously anticipated to merge with BSI, emulating the approach taken by other state-owned Islamic banks.