The alleged mergers and acquisitions deal between HDBank and PGBank has turned sour, as confirmed by representatives from both sides.
PGBank officially announced to stop looking for a potential suitor and focus on independent activities instead.
|PGBank has given up on its M&A plan after six years of trying |
The bank said that although the deal received the in-principle approval from the SBV in October 2018, the tie-up deal between the two banks has not been officially approved due to unspecified reasons.
Previously, PGBank almost sold stakes to VietinBank and MSB. However, MSB also confirmed that the deal did not go through eventually. Nguyen Quang Dinh, chairman of PGBank's Board said that after six years of pursuing the mergers and acquisitions (M&A) plan, the bank could not fulfil its dreams.
PGBank shareholders also approved the termination of the M&A plan with HDBank at the annual general meeting of shareholders on March 30.
By the end of 2020, PGBank had a total of VND626 billion ($27.2 million) of internal non-performing loans, down 16.3 per cent since the beginning of the year.
The bank also approved the 2021 pre-tax profit plan of VND310 billion($13.48 million), an increase of 46 per cent compared to 2020 on the assumption that total income will not increase, administrative expenses will increase 9 per cent, and risk management expenses plummeted 44 per cent.