Complete Business Portfolio, BTPN Acquisition Of OTO Group

Cooperation (Photo: dock. Unsplash)

PT Bank BTPN Tbk (BTPN) stated that the acquisition of two financing companies under the auspices of the OTO Group, namely PT Oto Multiartha (OTO) and PT Summit Oto Finance (SOF), will further complement the company's product and service portfolio so that it is always relevant to customers.

According to President Director of PT Bank BTPN Tbk Henoch Munandar, the acquisition of the OTO Group is also an important milestone for Bank BTPN in providing a more complete business portfolio to serve the wider customer segment.

"Bank BTPN continues to strive to realize it into a universal bank, meaning it serves all segments in the community. Indeed, this acquisition will accelerate the portfolio mix or segment mix in BTPN, especially in consumer finance or consumer financing," Henoch said, quoting Antara.

He said Bank BTPN had also signed with the OTO Group to start joint finance after the integration of both parties.

In addition, the integration of OTO Group into the BTPN Bank network will also create a wider ecosystem for the two entities through the use of their respective branches, as well as increase human resources through various joint training programs.

According to Bank BTPN records, the value of acquisition transactions against OTO Group reached IDR 6.55 trillion. Henoch said that his party had completed the right issue where the majority of the funds were used for acquisition transactions. The additional capital of the rights issue obtained by Bank BTPN is IDR 6.73 trillion.

After the acquisition settlement, Bank BTPN became the largest shareholder controller of OTO and SOF with a portion of 51 percent. Meanwhile, PT Summit Auto Group, which is a subsidiary of Sumitomo Corporation, holds 34 percent of OTO and SOF shares and PT Sinar Mas Multiartha Tbk at 15 percent.

Henoch said the joining of the OTO Group into the BTPN Bank ecosystem could encourage product and service innovation to be more relevant, provide added value and encourage the creation of a more meaningful life for all stakeholders, especially for BTPN Bank customers.

"We hope that with this acquisition, the Bank BTPN ecosystem can provide more choices of products and services that suit our customers' needs, both for two-wheeled and four-wheeled vehicles," he said.

Acquisition is also considered to open up new opportunities for Bank BTPN to increase the synergy between vehicle financing services and other financial services that we provide, such as savings, investment, and digital banking services.

Meanwhile, President Director of PT Summit Oto Finance and CEO of OTO Group Victoria Rusna said that OTO Group management welcomed the joining of Bank BTPN as a new shareholder as well as a controlling shareholder in the OTO Group.

Rusna added that the release of shares by OTO Group to Bank BTPN was a strategic step for the company to increase the competitiveness of PT Oto Multiartha and PT Summit Oto Finance in the financing industry. Degan is under the auspices of Bank BTPN, Rusna hopes that OTO Group will become more competitive in the market.

"Through this acquisition process, we believe that OTO Group will become more competitive and can provide better and more sustainable services to the community in general and especially to our customers, our business partners, dealers and dealers, as well as our other business partners," said Rusna.

For information, Bank BTPN posted solid credit growth at the end of 2023. Referring to the financial statements, the company stated that the increase mainly occurred in the corporate segment which grew 7.6 percent on an annual basis (yoy).

Meanwhile, credit in the small and medium enterprises, Jenius, and joint finance segments also increased by 17.7 percent, 131.1 percent, and 681.7 percent respectively compared to the previous year.

Overall, the total credit disbursed by Bank BTPN in 2023 reached IDR 156.6 trillion, an increase of 7.1 percent compared to the previous year.