VNPost buys into LienVietBank

February 23, 2011 | 13:00

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Vietnam Post will hold an 18 per cent stake in LienVietBank in a merger between its affiliate Vietnam Postal Savings Services Company and the bank.

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The prime minister signed a decision on February 21 agreeing VNPost’s capital contribution to LienVietBank. Of which, VNPost will contribute its stake through its affiliate Vietnam Postal Savings Services Company (VPSC) corporate value and cash.

LienVietBank will also change its name to LienVietPostBank. VPSC will then be a branch of LienVietBank once the deal is finished.

According to a source from LienVietBank, VNPost will contribute VND810 billion ($39.1 million) to LienVietBank to hold an 18 per cent stake, which is equal to the stake held by the largest shareholder of the bank – Him Lam property developer in Ho Chi Minh City.

The deal is expected to be announced by the two sides by the end of March. This is the first merger deal between the two financial institutions in Vietnam in the past decade.

LienVietBank has currently VND3.6 trillion ($176.3 million) of chartered capital.

VPSC plans to earn revenue of VND426 billion ($20.5 million) this year. The company has mobilised around VND10 trillion ($483 million) of postal savings capital so far. The company has nationwide network of 800 transaction points along with 13,000 post offices of VNPost’s network.

VPSC earned revenue of VND783 billion ($37.8 million) from postal saving services last year.

By Van Anh

vir.com.vn

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