Central Bank approves Techcombank acquisition
The State Bank of Vietnam (SBV) has approved Vietnam Technological and
Commercial Joint Stock Bank's (Techcombank) proposal to acquire Vietnam
Chemical Finance Joint Stock Company (VCFC).
The State Bank of Vietnam (SBV) has approved Vietnam Technological and
Commercial Joint Stock Bank's (Techcombank) proposal to acquire Vietnam
Chemical Finance Joint Stock Company (VCFC).
The proposal, which was approved on early June, is to turn the VCFC into a one-member limited liability company with 100 percent charter capital owned by Techcombank.
Under Decision 1108/QD-NHNN, the central bank has allowed Techcombank to receive all the legitimate assets, rights, obligations, and benefits of the VCFC.
Techcombank and the VCFC shall follow procedures for a business type conversion, business registration, public notification, and other legal procedures under the provisions of laws.
The SBV has also issued Decision 1109/QD-NHNN on amending and supplementing some contents of the establishment and operation licence of the VCFC.
Accordingly, the new company's full name will be Technological and Commercial Finance Company Limited (TechcomFinance) and with a charter capital of 600 billion VND (27.64 million USD) and it will be 100 percent owned by Techcombank.
Techcombank was one of the four founding shareholders of the VCFC, with contributed capital of 60 billion VND (2.76 million USD), equivalent to 10 percent of the total capital. The other three founding shareholders were Vinachem with 37 percent contributed capital; Ha Bac Nitrogenous Fertiliser and Chemical Limited Company with 2 pe cent; and Bao Minh Insurance Corporation with 10 percent.
As of January 9, 2015, Techcombank completed the receipt of more than 53.92 million shares, corresponding to 89.87 percent of the VCFC's charter capital, increasing its ownership to 99.87 percent.
Industry experts forecast that the wave of commercial bank and finance company mergers will become a major trend this year as mergers can help meet legal regulations and boost consumer lending.
According to an SBV circular, a bank will be allowed to possess stakes in maximum two credit institutions and the ownership must not be more than 5 percent.
Many banks currently own several stakes in financial companies, and in many cases, their stakes surpass the 5 percent benchmark.
According to another SBV's draft circular on the consumer credit activities of financial companies, which is expected to be approved soon, commercial banks will need to establish financial companies if they want to venture into consumer lending services.-VNA
The proposal, which was approved on early June, is to turn the VCFC into a one-member limited liability company with 100 percent charter capital owned by Techcombank.
Under Decision 1108/QD-NHNN, the central bank has allowed Techcombank to receive all the legitimate assets, rights, obligations, and benefits of the VCFC.
Techcombank and the VCFC shall follow procedures for a business type conversion, business registration, public notification, and other legal procedures under the provisions of laws.
The SBV has also issued Decision 1109/QD-NHNN on amending and supplementing some contents of the establishment and operation licence of the VCFC.
Accordingly, the new company's full name will be Technological and Commercial Finance Company Limited (TechcomFinance) and with a charter capital of 600 billion VND (27.64 million USD) and it will be 100 percent owned by Techcombank.
Techcombank was one of the four founding shareholders of the VCFC, with contributed capital of 60 billion VND (2.76 million USD), equivalent to 10 percent of the total capital. The other three founding shareholders were Vinachem with 37 percent contributed capital; Ha Bac Nitrogenous Fertiliser and Chemical Limited Company with 2 pe cent; and Bao Minh Insurance Corporation with 10 percent.
As of January 9, 2015, Techcombank completed the receipt of more than 53.92 million shares, corresponding to 89.87 percent of the VCFC's charter capital, increasing its ownership to 99.87 percent.
Industry experts forecast that the wave of commercial bank and finance company mergers will become a major trend this year as mergers can help meet legal regulations and boost consumer lending.
According to an SBV circular, a bank will be allowed to possess stakes in maximum two credit institutions and the ownership must not be more than 5 percent.
Many banks currently own several stakes in financial companies, and in many cases, their stakes surpass the 5 percent benchmark.
According to another SBV's draft circular on the consumer credit activities of financial companies, which is expected to be approved soon, commercial banks will need to establish financial companies if they want to venture into consumer lending services.-VNA
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