This is a calculated move designed years ago and executed to perfection one can guess. Anybody else are doing the same?
Wednesday, November 30,2011,21:01 (GMT+7)
By Hong Phuc – The Saigon Times Daily
HCMC – Shinhan Vietnam Bank has become the largest foreign bank in Vietnam after formally taking over Shinhan Vina Joint-Venture bank on Monday.
According to Vietcombank Securities Co. Ltd., the consultant for this merger, Shinhan Vietnam has new chartered capital of VND 4,575 trillion and total assets of VND18 trillion, and nine branches in Vietnam.
This is the first merger of two banks in Vietnam in line with Circular 04 issued by the State Bank of Vietnam in February last year on the M&A framework in the banking sector.
Any merger under the new regulation must go through a two-stage approval process – agreement in principle and final endorsement by the central bank.
The deal relating to Shinhan Bank, which was initiated in March, obtained the central bank’s preliminary blessing on September 8 and the final approval on November 11, said Vietcombank Securities.
Previously, the central bank had allowed Bank for Foreign Trade of Vietnam (Vietcombank) to transfer its entire stake in Shinhan Vina Bank to South Korea’s Shinhan Financial Group and approved the merger of Shinhan Vietnam and Shinhan Vina.
Shinhan Vietnam took over all network, human resources, assets, obligations and rights of Shinhan Vina.
The joint-venture bank before being merged into Shinhan Vietnam was established in 1993 under the name of First Vina Bank with chartered capital of US$75 million, with Vietcombank holding a 50% stake and two South Korean partners Korea First Bank and Daewoo Securities with 40% and 10% respectively.
Shinhan Financial Group acquired all stakes of South Korean partners in 2001 and renamed the bank as Shinhan Vina.
Shinhan Vietnam Bank, set up in 2008 with charted capital of VND3 trillion, is one of the first five 100% foreign-invested banks licensed in Vietnam.