State Bank of Viet Nam (SBV) has approved the acquisition and transfer of Post and Telecommunication Finance Company Ltd (PTF) between Vietnam Posts and Telecommunications Group (VNPT) and SeABank.

Under Decision No 1112/QD-NHNN signed by SBV Governor Le Minh Hung on Tuesday, VNPT and SeABank must complete all procedures related to the deal in accordance with the country’s legal regulations before August 22 this year. If the two sides fail to meet the deadline, the decision will automatically expire.

PTF is responsible for reporting the results of the deal to SBV, enclosed with documents proving the completion of the acquisition and transfer of the deal within five working days from the date of the transfer completion.

It will also have to apply to SBV for the revision and amendment of its business licence as per SBV’s regulations.

Earlier in February, VNPT chairman Tran Manh Hung announced that VNPT had sold its finance subsidiary PTF to SeABank at a price higher than expected. In December 2017, a VNPT official announced that the company would sell all the assets of PTF for at least VND500 billion (US$21.9 million).

Founded in 1998, PTF is Viet Nam’s first finance company, fully owned by VNPT, with a charter capital of VND500 billion.

According to PTF’s financial statements, its profits in 2015 and 2016 were VND21 trillion and VND19 trillion, respectively.

Withdrawal from PTF is part of VNPT’s plan to divest from non-core businesses.

The group is expecting its restructuring plan and development strategy to get an early approval of the Prime Minister, which is the basis for equitising the group in 2019.

VNPT’s development strategy from 2018 to 2025 with a vision to 2030 is aimed at renovating its growth model towards improving productivity and competitiveness, Hung said. — VNS