State Bank approves merger of Southern Bank and Sacombank

The State Bank of Vietnam (SBV) approved in principle a merger between Saigon Commercial Bank (Sacombank) and Southern Bank on Thursday, said Sacombank.

A Sacombank subsidiary in Laos (Photo: SGGP)

The deal had been put forward by Sacombank chairman. Shareholders of the two banks agreed with the merger project at an extraordinary meeting last month.

Sacombank will take over all assets, brands, images, brand names, stock codes and intellectual property rights and will be responsible for all debt, tax and financial obligations.

After being merged, Sacombank will become one of the five largest banks in Vietnam with total asset of VND290,861 billion (US$13.17 billion) and chartered capital of VND18,853 billion (US$853.48 million).
 
The new bank’s network will comprise 567 subsidiaries and offices nationwide and two branches in Laos and Cambodia with total 15,510 employees.

Sacombank leaders said that the deal suited the Government’s policy in restructuring the banking system to create large, strong, safe and more professional financial institutions.
 
According to an announcement from SBV, deputy chairman of Sacombank Tram Be has voluntarily pledged to ensure shareholder’s rights and interests to all shares as per the law and Sacombank regulations.

Therefore, Mr. Be will not participate in management of the new bank. The new management board will be assigned by SBV, ensuring that the merged bank will operate safely and effectively.

By staff writers – Translated by Hai Mien

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