BTN Officially Acquires Venture Capital Owned by the Red Plate Subsidiary

The State Savings Bank (BTN) has officially acquired a venture capital company (PMV) to support the company's main business in housing finance. The company will seek approval from OJK to realize the plan.

This decision was taken after the company held an Extraordinary General Meeting of Shareholders (EGMS) which was held today (29/8). The GMS also discussed work evaluation during the first semester of 2019 and changes in the company's management structure.

"We will follow up on the approval of today's EGMS regarding the acquisition of PMV and then we ask for approval from the OJK, so that it can be followed up as a strategic business step taken by the company in business development," said BTN Corporate Secretary Achmad Chaerul in an official statement.

BTN acquired PT Sarana Papua Ventura (SPV), a subsidiary of PT Bahana Artha Ventura (BAV), which is a subsidiary of PT Bahana Pembinaan Usaha Indonesia (Persero). This election is also expected to be a synergy of SOEs mandated by the Ministry of SOEs.

BAV itself has a subsidiary, PT Sarana Nusa Tenggara Timur Ventura, whose majority stake has been acquired by BRI. Now in-rebranding became BRI Ventures and led by Nicko Widjaya, who previously led Telkom's PMV, MDI Ventures.

The company has prepared a budget to acquire SPV shares. The funds will be used as capital investment and PMV business development in the amount of up to 90% which will be implemented in stages.

According to Chaerul, PMV management will remain focused on supporting the company's main business in housing finance and increasing non-interest income, thereby strengthening credit growth and company profits.

The entry of BTN, of course, enlivens the competitive map of state-owned banks, which are busy now having their own CVC. Of the four state-owned banks, only BNI is not official yet.

BNI has been blaring about this discourse since last year. Last news said BNI would announce it at the end of 2019. It has not been decided whether to form a new one or acquire an existing one. BNI has prepared a budget of Rp600 billion to Rp700 billion for this corporate action.

The entire banking plan for this venture capital acquisition, one of which is to maintain share ownership in Finarya (LinkAja) so as not to be diluted.