Central bank approves company-bank merger

Friday, 2016-02-19 11:38:05
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MBBank will receive all assets, rights, obligations and legal interests of SDFC.
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NDO/VNA - The State Bank of Vietnam (SBV) has issued a decision to approve the merger of Song Da Finance Company (SDFC) and Military Commercial Joint Stock Bank (MBBank). 

The merger will come into effect on March 18 this year.

MBBank will receive all assets, rights, obligations and legal interests of SDFC.

Within 15 working days of the decision taking effect, the bank must complete the procedures for business registration, announce the merger as well as implement other duties as prescribed by law.

SDFC will transfer all assets, rights, obligations and legal benefits to MBBank.

SBV will also complement MBBank's operating licence's new content, such as financial advisory, asset management service, mergers and acquisitions advisory, as well as investment advisory.

MBBank announced the merger with SDFC in a shareholder meeting in October 2015.

The new finance company - MB Finance Co Ltd (MB Finance) - is estimated to have a charter capital of VND500 billion (US$22.3 million).

In the first two years, MB Finance will be equipped with facilities, personnel and a distribution network to enter the consumption finance market. The new company will expand its market share and operations, as well as diversify its products offered to customers from the third year of operations.

The ratio between SDFC shares and MBBank shares is currently 2.2/1.