More News
RETAIL BANKING | Cesar Tordesillas, Vietnam

Habubank-SHB merger enters 2nd of 3 stages

The merger of Habubank and Sai Gon-Ha Noi Bank is soon to reach the second stage of a three-stage process.

This will make the banks the first tobe voluntarily merged to take place this year.

The State Bank of Viet Nam approved the merger in principle, and SHB is preparing to ask the State Securities Commission to approve an issue of additional shares.

“These are not bonus shares or treasury stocks, so there will be no changes in reference price or dilution,” said SHB chairman Do Quang Hien.

Under the plan being discussed, HBB shareholders will be able to exchange one HBB share for three quarters of a new SHB share. If SHB shares retain their current trading price of VND9,200 per share, that would result in HBB being traded at around 20 per cent below converted value. The expected result is that, after the merger, SHB shares would decline in value.

HBB shareholders will retain about 75 per cent of equity in the bank, worth around VND4 trillion or US$190.4 million, while the remaining 25 per cent will be bought up by SHB.

For more.

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.