VIT Securities will merge with MB Securities on November 1 in Vietnam's first merger between securities firms, which recently received approval from the State Securities Commission.
The commission also granted a certificate for the exchange of stocks between the companies. More than 62.1 million shares will be issued.
The new brokerage after the merger will have a charter capital of VND621 billion (US$29.2 million) due to the stock swap ratio. MB Securities shareholders will receive one new share for each two shares they currently own, while the ratio for VIT Securities shareholders is 1:0.462.
MB Securities has a charter capital of VND1.2 trillion ($56.6 million), 120 million outstanding shares and convertible bonds worth VND600 billion ($28.3 million). VIT Securities has a charter capital of VND46 billion ($2.1 million).
VIT Securities posted losses of VND4.1 billion ($193,300) in the first six months of this year. As of the second quarter, its accumulated losses reached VND24.6 billion ($1.1 million), 53 percent of the charter capital. The company's total assets amounted to only VND29 billion ($1.3 million). Both companies are unlisted.