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Habubank takeover awaits final okay

Update: April, 05/2012 - 10:18

HA NOI — After recently refuting rumours of a pending merging between Habubank (HBB) and Sai Gon-Ha Noi Bank (SHB), the State Bank of Viet Nam approved the merger in principle a few days ago in an unreleased document, according to a source close to the matter who asked not to be named.

"However, the document is only a consensus opinion as a guideline for the regulators and does not mean the merger is finalised," the source said.

Habubank declined to comment.

The central bank also ordered the two commercial banks to comply with Circular No 04/2010/TT-NHNN governing mergers and acquisitions of banks and submit a feasible merger scheme.

The two listed banks signed a memorandum of understanding back on March 8, including agreements on merger terms. Specifically, if the merger occurred, Habubank would transfer all of its assets and liabilities, including labour and legal benefits and obligations, to SHB, which would therefore assume responsibility for them.

The banks also agreed on a stock-swap ratio of one SHB share exchanged for 1.34 HBB shares. SHB would be responsible for issuing an equivalent quantity of shares to Habubank shareholders.

Under the agreement, Habubank would also not be able to contract with third parties without the consent of SHB.

"The merger depends on a final decision by the State Bank," the source said. "But first, Habubank must get approval from its own shareholders during the upcoming meeting." SHB was also expected to hold its shareholder meeting no later than April 30. — VNS

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