On the itinerary for restructuring begun in 2012, a series of acquisitions and mergers (M&As) of Vietnamese banks have taken place since early 2015.
The State Bank of Vietnam (SBV) has acquired Vietnam Construction Bank (VNCB) at zero VND.
On February 2, 2105, SBV unexpectedly broadcast notice of compulsory acquisition of all the shares of the Vietnam Construction Bank (VNCB) at zero VND per share.
Accordingly, SBV has become the owner with 100 percent of charter capital of VNCB and terminated all rights and interests as shareholders of the existing shareholders of the bank. Simultaneously, the SBV decided to transform the VNCB into the state-owned one member limited liability company.
With the ownership of SBV over the entire charter capital of the VNCB and the administration of the VietcomBank over the VNCB, the VNCB will have more favourable conditions to successfully implement the restructuring plan and develop the business activities more safely and effectively.
Along with the M&A of VNCB, Ocean Bank was acquired for zero VND on April 25.
SBV has explained that the acquisition of OceanBank at zero VND as due to its weak management and operation. The direct acquisition of all the shares of the Ocean Bank has enabled SBV to continue the restructuring of Ocean Bank to guarantee the payment of the deposits and reduce the impacts of Ocean Bank on other credit institutions. The Vietnam Bank for Industry and Trade (Vietinbank) is assigned to administer Ocean Bank.
Mekong Development Bank (MDB) approved to merge with Maritime Bank
This is the first merger in 2015. On March 18, the SBV Governor had issued Document 1607/ NHNN- TTGSNH to approve the merger of MDB and Maritime Bank. The merger plan was drafted by Maritime Bank and MDB in 2014.
The merging of the two banks will increase the charter capital of nearly VND11,800 billion, including VND8 trillion of the Maritime Bank and VND3,750 billion of the MDB and lead to total assets of VND113 trillion. The M&A ratio is 1: 1.
M&A of SouthernBank and Sacombank approved
At the annual shareholders' meeting 2014 on April 20, Chairman of the Southern Bank, Mach Thieu Duc, said that 90 percent of the merging process of the two banks has been done. Accordingly, the plan has been approved by the Banking Supervisory Agency and will be finally decided by the governor. It is expected that in the second quarter of 2015, the plan will be approved by the SBV to complete the final steps of the merging process.
After the merger, Sacombank will have the charter capital of VND16,500 billion, with total assets of approximately VND240 trillion. The merging ratio is 1: 0.75, meaning that one share of the Southern Bank of is equivalent to 0.75 of the Sacombank.
Merging of MHB into BIDV approved
On April 14, Chairman of the Bank for Investment and Development of Vietnam (BIDV) Tran Bac Ha officially announced the merger.
With the swap ratio between the bank merger is 1: 1, the bank after the merger has scaled up the assets to VND31,511 billion, of which the charter capital of the BIDV is VND28,112 billion and of the MHB of nearly 3,400 billion. Total assets of the two banks after the merger are over VND695 trillion, of which VND45 trillion is contributed by the MHB.
PGBank - VietinBank deal
At the annual shareholders' meeting on April 14, the leaders of the Vietinbank said that in the first 3 months of this year, the merger agreement has been completed between the two parties. The deal is expected to be completed after the approval of SBV in June, 2015.
After the merger, there is no change in the name of the VietinBank but the total assets of the bank will be scaled up to more than VND25 trillion, so the total assets will be VND686 trillion with an increase of the charter capital of VND3 trillion to over VND40 trillion.
The charter capital of the two banks will be set at the swap ratio of 1: 0.9; one share of the PGBank is equivalent to 0.9 of the VietinBank.
Hoang Sang
Vietnamese
