Petrolimex issues plan for PG Bank-HDBank merger

HDBank signed the strategic co-operation agreement with Petrolimex

Petrolimex has restructured its investment in PG Bank in accordance with the directions of the government, the Government Inspectorate, MoIT, and the State Audit Office of Vietnam.

The group also hired a professional consultant to plan and the built a specific schedule, which identifies the estimated swap ratio of PG Bank and HDBank shares at 1:0.621. This means one share of PG Bank will be converted into 0.621 shares of HDBank.

Additionally, HDBank plans to pay a bonus equivalent to 20 per cent of the total shares for shareholders in the coming time. If the merger plan is approved, Petrolimex will also get an additional 20 per cent of the bonus shares based on the total number of swapped shares after the merger. Moreover, the merger will also create a surplus estimated at VND5 trillion ($220.3 million), which will benefit all shareholders, including Petrolimex.

Several days earlier, at the annual general shareholders’ meeting on April 21, the merger plan was approved with high majority. HDBank said that the strategic co-operation between Petrolimex and HDBank will wed the advantages of a leading petroleum retailer and a fast-growing bank.

HDBank holds great experience in the management and administration of merger and acquisition activities. In 2013, HDBank merged with DaiABank and acquired the total capital of Société Générale Viet Finance Co., Ltd. (SGVF), one of the largest foreign-owned consumer finance companies in Vietnam.

By merging with PG Bank, HDBank expects to become an outstanding financial and credit organisation, and its network of individual customers and small- and medium-sized enterprises will expand drastically.

The deal will raise HDBank’s charter capital to VND15.345 trillion ($676 million) and increase the number of its branches ad transaction offices to 370 and financial transaction units to 15,000, effectively covering the nation’s 63 cities and provinces.

HDBank estimates that its financial indicators will improve. The total assets will be VND267.256 trillion ($11.8 billion), total outstanding loans VND170.641 trillion ($7.5 billion), while pre-tax profit will increase to VND4.712 trillion ($207.6 million).

This is also an important step to reach the growth target by 2021, improve business efficiency, and bring significant benefits for the bank, shareholders, partners, customers, and employees.