VietNamNet Bridge -The Saigon Commercial Bank (Sacombank) on July 11 held an extraordinary shareholders meeting to approve a plan to merge with Southern Bank, with 93.7 per cent of shareholders voting in favor.

Sacombank extraordinary shareholders meeting on July 11.

The post-merger bank will retain the personnel structure of Sacombank and take on some qualified staff from Southern Bank.

The Board of Management will have nine members (as with Sacombank), the Supervisory Board will have two more members, for five members, and Board of Directors will have five more members, for 25 members.

The General Director of the post-merger bank will be the General Director of Sacombank, and its headquarters will be Sacombank’s current headquarters.

The swap ratio for shares of Southern Bank and Sacombank is 1:0.75, or 1 share of Southern Bank being equal to 0.75 shares of Sacombank.

Sacombank expects lower profits in the first three years after the merger as it increases its business scale.

Profit before tax for 2015 is expected at around VND1 trillion ($45.85 million), in 2016 VND1.13 trillion ($51.81 million), and 2017 VND1.33 trillion ($60.98 million), which are significantly lower than Sacombank’s most recent profit of around VND3 trillion ($137.55 million).

The post-merger bank will have charter capital of VND18.8 trillion ($861.98 million) and total assets of VND290 trillion ($1.32 trillion). It will have a total of 112 branches and 526 transaction points, two subsidiaries and nine foreign branches, with a staff of 15,510.

The merger is expected to be conducted in the fourth quarter of this year.

VET