PVF plans merger with Western Bank

Tuesday, Apr 23, 2013 14:11

HA NOI (VNS) — Western Bank issued documents on its long-anticipated merger with PetroVietnam Finance (PVF) late last week, expected to be approved during the bank's annual meeting on Friday.

The PVF confirmed to the Vietnam Economic Times that the merger contract and draft charter of the new bank had been completed.

According to these documents, the new entity will have a charter capital of VND9 trillion (US$428.5 million), corresponding to 900 million shares each worth VND10,000 ($0.47).

Former shareholders of both parties will become shareholders of the new bank, with all the benefits and obligations of a normal shareholder.

In addition, during the time between the contract signing date and the date the merger begins, the two sides will continue normal operations.

After incorporation, the new bank will inherit all the rights and obligations of both sides, including debts.

Western Bank will authorise the PVF to perform necessary procedures with State agencies to implement the merger.

The PVF, a non-banking financial corporation and a blue chip listed on the HCM City Stock Exchange, has planned to become a banking institution for two years. Merging with Western Bank is the easiest way for it to do so. And for Western Bank, which has been facing liquidity troubles, and merging with the PVF offers a means to save itself from bankruptcy.

Recently, the PVF has been restructuring its operations and upgrading its networks of information technology and human resources. — VNS

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