Sacombank allowed to merge with Southern Bank

August 14, 2015 | 16:00

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The State Bank of Viet Nam has approved in principle the merger between Sai Gon Thuong Tin Commercial Joint Stock Bank, known more commonly as Sacombank, and Southern Commercial Joint Stock Bank.

Customers make a transaction at a Southern Bank's branch. Photo cafe.vn

Sacombank had made the proposal to the central bank.

The two banks have been allowed to begin the merger process and have to complete all SBV-mandated procedures related to financial sector M&A and submit to the bank for approval.

Following the merger, Southern Bank shareholders will get 0.75 Sacombank share for each share they hold.

The merged entity, to be called Sacombank, will have a charter capital of more than VND18.85 trillion (US$856 million) and total assets of over VND290.86 trillion ($13.2 billion).

At respective extraordinary meetings held by the two banks in July, executives of both banks said the merger is expected to be completed by the fourth quarter of this year.

Sacombank shareholders agreed with a 93.7 per cent vote in favour.

Sacombank reported a pre-tax profit of more than VND2.8 trillion ($128.4 million) last year.

In recent years many financial institutions, spurred by the Government and the SBV, have been restructuring as integration forces the banking industry to scale up to take on large foreign banks.

VNS

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