Vietnam Daily News

Three to-be merged banks agree share swap ratio at 1:1

Written by Dailynews.vn Saturday, 10 December 2011 19:16

Three to-be-merged banks namely Saigon Commercial Joint Stock Bank (SCB), Vietnam Tin Nghia Commercial Joint Stock Bank (Vietnam Tin Nghia Bank) and De Nhat (First) Commercial Joint Stock Bank (Ficombank) on December 8 announced to organise extraordinary shareholders' meetings on December 15 to pass contents of the merger plan.

According to the document of SCB, the merged bank will retain the name of Saigon Commercial Joint Stock Bank (SCB). The new bank will have chartered capital of 10.583,8 trillion dong, total share volume in circulation of over 1.058 billion units and total assets of 153.626 trillion dong.

The new bank will inherit and carry out all current business operations of SCB, Vietnam Tin Nghia Bank and Ficombank. Also, the new bank will inherit the whole network of these three banks.

The unification will be done in the form of transferring all shares of Ficombank, Vietnam Tin Nghia Bank and SCB to the new bank to be named SCB. Each common share of a bank will be swapped into a share of new SCB (at the ratio of 1:1).

Regarding the ownership structure of banks after the consolidation, the local individuals will account for 85.17 percent (including 3,679 shareholders), 14 institutional shareholders with 14.41 percent stake and the remaining 0.41 percent as treasury shares.

The human resource structure consists of the director board (11 members), control board (five members), advisory board (four members) and exclusive board (12 members).

In 2012, the new bank plans to reach total assets of 168.105 trillion dong and after tax profit at 667 billion dong. In 2013, it's after tax profit is expected at 1.185 trillion dong and 1.865 trillion dong by 2014.

By 2014, the new bank expects to hike its chartered capital to nearly 16 trillion dong, of which, new shareholders will account for six trillion dong (or 37.5 percent stake).

After the extraordinary shareholders' meeting passes the merger plan, the parties will coordinate applications to submit for the State Bank of Vietnam (SBV)'s principle approval. It is expected that on December 23, the new bank will hold a shareholders' meeting.

Source: www.intellasia.net/news/articles/finance/111350327.shtml