The State Bank of Vietnam (SBV) has decided to approve the transfer of the contributed capital of Vietnam Technological Commercial Joint Stock Bank (Techcombank) at Technological and Commercial Finance Company Limited (Techcom Finance) to Lotte Card Company Limited (South Korea).
According to the official document from SBV, the participants will have to complete the transfer within three months since the effective date of this decision, from February 12th to May 12th. After this time, if the participants have not performed the transfer, the decision shall automatically cease to be effective.
Previously, on January 19th, SBV approved in principal the transfer of this contributed capital. The policy to transfer Techcom Finance was approved by Techcombank’s Board of directors on May 22nd 2017. According to information at that time, the transfer price of this deal reached up to 87.5 billion won, equivalent to 1.734 trillion dong, 2.89 times larger than Techcom Finance’s charter capital (600 billion dong).
This deal will help Techcombank record an extraordinary profit of over 1.1 trillion dong in the first or second quarter of 2018. On March 3rd, Techcombank will hold its annual general meeting. Many contents are expected to be disclosed in the meeting, including the details of the transfer of Techcom Finance.
Techcom Finance will be responsible for reporting to SBV on the results of the transfer, together with documents proving the completion of the transfer within five working days since the deal is completed. At the same time, the company will carry out procedures for amendment and supplement of its license.
A number of remarkable moves have taken place in consumer finance sector in the last days of 2017 and early 2018. Another financial institution also from South Korea Shinhan Card has recently decided to fully acquire Prudential Finance Vietnam at a price being 5.52 times of the face value. The deal was announced on January 23rd. Accordingly, Shinhan will spend 151 million USD, equivalent to 3.420 trillion dong in this deal.
In early February, Southeast Asia Commercial Joint Stock Bank (SeABank) has successfully completed the acquisition of VNPT Post Finance Company. The state-owned group said it is in the process of preparing the documents to submit to the SBV and the Ministry of Information and Communications in order to officially sign a contract to sell VNPT Post Finance Company to SeABank.
