Shareholders approve merger of three Vietnamese banks

TN News

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Around 90 percent of shareholders at three local banks, Vietnam Tin Nghia, Ficombank and Saigon Commercial Bank, have voted in favor of the merger of the three.

They also reached an agreement Thursday that the new bank formed by the merger will retain the name of the largest lender of the three, Saigon Commercial Bank. The new bank will have a registered capital of VND10.58 trillion (US$504 million).

According to a plan approved by the shareholders, each common share of the three banks will be swapped into a share of the newly formed lender, at the ratio of 1:1.

News website VnExpress reported that with total assets of VND153.6 trillion (US$7.3 billion), the new bank will be one of the  five largest lenders in Vietnam. It will seek foreign partners to increase its capital, the report said.

A shareholder meeting of the new bank will be held next week, after the merger plan is approved by the State Bank of Vietnam.

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The merger of the Ho Chi Minh City-based banks was greenlighted by the central bank earlier this month in an attempt to bolster their liquidity and to cut costs.

The State Bank is promoting mergers and acquisitions in the banking sector as it wants to strengthen the financial system with stronger banks that can also compete on the regional level.

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