Vietnam Daily News

Shareholders agree on SCB name for newly-merged bank

Written by Dailynews.vn Friday, 16 December 2011 17:45

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 15 organised extraordinary shareholders' meeting to pass the merger plan of three banks. At the time of closing the meeting, shareholders of all three banks passed the merger plan and agreed to use the name of Saigon Commercial Joint Stock Bank (SCB) for the newly-merged bank. After the merger, the unified bank will have chartered capital of nearly 10.6 trillion dong, equalling to the total volume of shares in circulation of over 1.058 billion shares and total assets of 153.626 trillion dong. The unification will be done in the form of transferring all shares of Ficombank, TinnghiaBank and SCB into share of newly-merged bank with the swap ratio of 1:1. Shareholder structure of the merged bank will include domestic individuals (accounting for 85.17 percent stake with 3,679 shareholders), 14 institutional shareholders with 14.41 percent stake and the remaining 0.41 percent stake will be treasury shares. After the shareholders approve the merger, banks will coordinate applications to ask for the State Bank of Vietnam (SBV)'s approval in principle. Nguyen Hoang Minh, deputy director of the central bank's HCM City branch, said the central bank will create all favourable conditions for the merger to ensure the interests of depositors. SCB is authorised to organise the unification shareholders' meeting on December 23, 2011 to adopt the staff structure, plan and development orientation in the future. Accordingly, in 2012, the newly-merged bank expects to gain after tax profit of 667 billion dong and it would be 1.185 trillion dong in 2013 and 1.865 trillion dong in 2014. The newly-merged bank also targets to hike its chartered capital to nearly 16 trillion dong by 2014, of which new shareholders will make up six trillion dong or 37.5 percent stake.

Source: www.intellasia.net/news/articles/finance/111351092.shtml