Interest arroused over Eximbank, Sacombank new merger rumours

October 09, 2013 | 10:02

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Investors are again questioning whether Eximbank (EIB) will merge with Sacombank (STB) after a large number of shares were traded through negotiation methods and there were changes in the bank's managing board.

Millions of EIB shares changed hands in September via negotiation, the same situation that occurred in January, May and June.

In the first nine months of this year, shares traded by this method hit 175 million, much higher than those traded via order matching.

In addition, an organisation shareholder of the bank planned to sell over 10 million shares (1 per cent of Eximbank's charter capital), according to Dau tu chung khoan (Securities Investment) newspaper.

Last month, the bank got a new general director, as well as two deputy general directors and chief accountant. Chairman Le Hung Dung will likely resign early next year.

These activities occurred as the bank continued to restructure.

In the first six months of this year, its profit declined by nearly 60 per cent compared to the same period last year to just VND581.2 billion (US$27.4 million), while VND14 trillion ($660.3 million) evaporated from total assets compared to the end of last year.

Last year, both Eximbank and Sacombank saw high trading volumes and linked transactions, making investors contemplate a potential merger.

In January, the two banks signed a cooperation deal that also laid out the groundwork for such a merger. Eximbank formally requested permission to merge from its shareholders in April.

Official statements from the banks said that these were only initial steps in a three-to-five year road map and that the merger would go ahead only if it were deemed to be appropriate and advantageous for both sides.

VNS

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