GBS - The State Bank of Vietnam has allowed Vietnam Prosperity Bank (VPBank) to acquire Vietnam National Coal - Mineral Finance Company (CMF), the Saigon Times Daily reported on July 2.
VPBank will have responsibility to take over all assets, rights and obligations of the finance firm.
Within 15 working days since the decision took effect on June 30, VPBank will have to complete procedures to change all licences of the finance firm under current laws and regulations.
With total registered capital of 1 trillion VND, CMF will be renamed as VPBank Finance Company Limited after being acquired by the unlisted lender.
Early last month, the Government gave ‘in principle’ approval to Vietnam National Coal and Mineral Industries Holding Corporation Limited (Vinacomin) to sell all its chartered capital at CMF to VPBank.
Viet Capital Securities Company (VCSC) in a recent daily report said this move is part of the bank’s plan to become a leading retail bank in Vietnam by 2017.
VPBank also is seeking foreign strategic partners, with a maximum expected share sale of 30 percent of its registered capital. Last year Singapore-based Oversea-Chinese Banking Corporation (OCBC) sold their stake in VPBank, VCSC said.
The restructuring process of the nation's financial system is considered one of three pillars of the economic reform unveiled in late 2012. The two other pillars are public investment and state-owned enterprises.