VietNamNet Bridge – The Southern Bank – Sacombank merger deal, once completed, would help Tram Be, one of the Vietnamese most influential tycoons in the banking sector, “kill two birds with one stone.”

The portrait of the tycoon

Tycoon Tram Be.

The public has been stirred since mid-February 2014 by the information that Tram Be and his family members violated the laws--when holding more than 20 percent of Southern Bank’s shares.

By the end of 2013, Tram Be had been the biggest individual shareholder with 8.36 percent of the chartered capital. His son Tram Trong Ngan, Deputy Chair of the Board of Directors, had reportedly held 4.42 percent of shares. His daughter Tram Thuyet Kieu, Deputy General Director of Southern Bank, had had 7.36 percent of the chartered capital.

Meanwhile, the 2010 Law on Credit Institutions taking effects since November 1, 2011, stipulates that one individual shareholder must not hold more than five percent of the chartered capital of a credit institution, and that the total shares held by one shareholder and his relatives must not be higher than 20 percent of the capital.

Tram Be’s family is believed to hold the most influential power in the banking sector. Be and his family members are now holding the controlling stakes of two commercial banks in Vietnam – Sacombank and Southern Bank.

In Sacombank, Be’s eldest son Tram Trong Ngan now holds 4.4 percent of stakes, younger son Tram Khai Hoa 1.93 percent and daughter Tram Thuyet Kieu 0.3 percent. Meanwhile, Be holds 0.15 percent of stakes.

Be had been a “quiet Vietnamese” until his name turned up on all local newspapers two years ago as the tycoon behind the deal of taking over Sacombank.

Not only having injected money in the banking sector, Be’s family is also the big investor in a series of huge projects, including the Binh Chanh Investment and Construction, Trieu An Hospital, Son Son Company and Long Toan port complex.

Killing two birds with one stone

Tram Be and his family members have once again become “hot” recently because of the information about the possible merger of Southern Bank into Sacombank.

The Southern Bank – Sacombank “marriage” could be a surprise to the business community. Prior to that, the expected marriage was the one between Sacombank and Eximbank.

However, analysts have commented that the Southern Bank – Sacombank merger is very likely to happen. With the current situation of the banks’ ownership, the merger process would go smoothly.

There is an important reason that can make the deal feasible that Tram Be really wants the deal to succeed.

If Southern Bank and Sacombank merge into each other, the ownership ratios of Be and his family members in the new bank would be surely decreasing. If so, they would no more violate the laws in terms of the ownership ratio ceilings.

Be family now holds 21 percent of Southern Bank’s stakes and 6.6 percent of Sacombank’s stakes. The former’s chartered capital is VND4 trillion, while the latter is VND12 trillion.

As such, the deal would be not only a Be’s strategic move, but also a wise decision which allows to adjust his ownership ratio in banks.

Manh Ha