Sacombank seeks merger partners after management shakeup

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Sacombank, Vietnam's fourth-largest publicly traded lender by assets, will pursue mergers with other banks, local media reported Saturday, after an annual meeting in which outsiders successfully took control of the bank.

Only three Sacombank officials joined the new 10-member management board. Four of the new board members came from Southernbank; two were from Eximbank, according to local media.

The shakeup came after Eximbank, leading other shareholders of Sacombank, demanded a new management board in February.

The appearance of Southernbank officials in the board, however, raised concern among Sacombank shareholders since the former is still a small bank in Vietnam, news website VnExpress reported.

Responding to a question on a possible merger between the two banks, Le Hung Dung, who represents major shareholders in Sacombank, said the new managers are in the process of seeking the right partners for a deal.

"We will exchange information with banks that we find suitable," said Dung, who also acts of chariman of Eximbank. "We won't rule out Southernbank."

Sacombank Chairman Dang Van Thanh described the changes to Sacombank's management board as "normal." He said the bank posted high profits in the first four months, which already accounted for 37 percent of its annual target for 2012.

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