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Sacombank merges with Southern Bank

Update: October, 02/2015 - 08:39

Representatives of Sacombank and Southern Bank conclude a merger deal today, with the witness of officials from the central bank and the southern bourse. — Photo

HCM CITY (VNS) — Sacombank yesterday merged with Phuong Nam Bank, or Southern Bank.

Sacombank said in an online report that the merger has helped it stand among the largest domestic banks, with total assets amounting to VND297 trillion (US$13.2 billion) and a charter capital reaching VND19 trillion ($838 million).

The bank now has more than 560 transaction points nationwide and in Laos and Cambodia, with the number of employees totaling some 15,500.

The bank said the supplement resources will enable it to broaden operational scales, improve service quality and enhance the ability to pump capital into the market. It added that it had scrutinised schemes to stablise post-merger issues, including staff, finance, business and risk management.

"Normally, banks cannot avoid certain challenges in the initial phase after a merger, such as how to harmonise business cultures, combine accounting and information technology systems, and dealing with human resources," Sacombank Chairman Kieu Huu Dung said .

"However, these are short-term issues that are not very difficult to handle. In the long run, mergers and acquisitions always benefit both sides of the deals, as well as shareholders, customers, the society and the State."

Yesterday, Sacombank announced that it had issued 400 million shares to swap with the shares of Southern Bank, along with another 242.75 million shares for other purposes related to dividend payment, buybacks and bonus shares. The shares will be distributed within three months after the State Securities Commission certified the issuance, on September 30, while the cut-off date for participants is October 20. — VNS

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