Central bank allows SHB-VVF tie-up

Tuesday, Sep 30, 2014 16:20

The central bank has allowed the merger between SHB and VVF on September 29.— Photo Ndh.vn
HANOI (Biz Hub) — The State Bank of Vietnam (SBV) approved the merger of Saigon-Hanoi Commercial Bank (SHB) and Viettel - Vinaconex Finance Joint Stock Company (VVF) on September 29.

SHB earlier finalised shareholders' opinions on the issuance of shares following the merger.

Of the VND1 trillion (US$47.6 million) capital in VVF, Vinaconex owns 33 per cent while Viettel owns 21 per cent. With the merger, Vinaconex and Viettel have become shareholders of the new bank.

The merger of banks and finance companies has become a major trend since early this year. VP Bank earlier acquired Vinacomin's Vietnam Coal-Mineral Finance Company (CFM).

Meanwhile, the SBV also approved in principle the acquisition by Vinatex's Vietnam Textile and Garment Finance Joint Stock Company (TFC) of Maritime Commercial Joint Stock Bank and Techcombank's acquisition of the Vietnam Chemical Finance Company.

It was earlier reported that financial companies can conduct credit activities such as installment loans or the issuance of purchasing cards while banks, which want to carry out such activities, must open finance companies to do so. — VNS

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