Habubank takeover awaits final okay

06-Apr-2012 Intellasia | dztimes | 7:01 AM Print This Post

After lately refuting whispers of the pending merging between Habubank (HBB) and Sai Gon-Hanoi Bank (SHB), the Condition Bank of Vietnam approved the merger in principle a couple of days ago within an unreleased document, based on a resource near to the matter who requested to not be named.

“However, the document is just a consensus opinion like a guideline for that government bodies and doesn’t mean the merger is completed,” the origin stated.

Habubank rejected to comment.

The central bank also purchased the 2 commercial banks to adhere to Circular No 04/2010/TT-NHNN regulating mergers and purchases of banks and submit a achievable merger plan.

The 2 listed banks signed a memorandum of understanding back on March 8, including contracts on merger terms. Particularly, when the merger happened, Habubank would transfer all its liabilities and assets, including work and legal benefits and obligations, to SHB, which may therefore assume responsibility on their behalf.

Banks also decided on a regular-swap ratio of 1 SHB share exchanged for 1.34 HBB shares. SHB would result in giving a similar volume of shares to Habubank investors.

Underneath the agreement, Habubank would also not have the ability to contract with organisations with no consent of SHB.

“The merger is dependent on the ultimate decision through the Condition Bank,” the origin stated. “However, Habubank must get approval from the own investors throughout the approaching meeting.” SHB seemed to be likely to hold its investor meeting no after April 30.

 


Category: Finance

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