SBS announces it will cancel listed stocks due to big losses

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Sacombank Securities Joint-stock Company (SBS), a brokerage unit of leading partly-private lender Sacombank, will cancel the listing of all its stocks on March 25 due to heavy losses, Tuoi Tre reported.

The State Securities Commission has forced SBS to cancel the listings of 126 million of its stocks in compliance with its regulation that bans a company with losses that exceed its capital from launching shares on the bourse.

The company's accumulative losses were estimated at US$84.7 million at the end of last year, 1.5 times higher than its chartered capital.

The commission also requires companies that post losses in three consecutive years to cancel their stock listings. Last year more than 20 companies canceled their listed stocks in Vietnam.

After investors became aware of the case, SBS listings on the Ho Chi Minh City stock exchange on February 27 fell 10 percent from the previous Friday to finish at VND2,500.

Speaking to VnExpress, SBS chairman Kieu Huu Dung said his company is facing troubles and it has submitted its plan to restructure to its major shareholders.

Dung said the plan includes a merger of seven types of stocks, allowing the company to set aside more capital to pay debts, and a convert $24 billion of funds currently in bond form into stocks.

SBS is seeking approval of its proposal from the securities commission and the central bank, according to Dung, who added that the company may go belly-up if the two governmental bodies reject his company's plan.

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