VietinBank requests merger with PGBank

The Board of Directors of VietinBank has negotiated with the Board of Directors of PG Bank to prepare the premises for the merger transactions.

At the shareholders' meeting this morning, April 14, the Board of Directors of the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) asked for shareholders' approval to merge with Petrolimex Joint Stock Commercial Bank (PGBank) and the merger contract between the two banks.

According to the report submitted to the 2015 annual general meeting of shareholders of VietinBank, in order to build VietinBank into a leading bank with regional scale and capacity, and after a period of research, VietinBank realized that PGBank is a potential credit institution to merge into VietinBank.

The Board of Directors of VietinBank has negotiated with the Board of Directors of PG Bank to prepare the premises for the merger transactions.

The Board of Directors of VietinBank also asked shareholders to approve the merger contract between the two banks; the plan to issue additional CTG shares to exchange for PGBank shares; approve the depository and listing of additional issued shares; approve the adjustment of charter capital... of VietinBank so that after the merger it will be consistent with the new charter capital... and assign the Board of Directors to proactively implement and deploy the necessary procedures to successfully carry out the merger.

PGBank, formerly known as Dong Thap Muoi Rural Bank, was established in 1993. As of December 31, 2014, this bank had a charter capital of VND3,000 billion, total assets of about VND25,779 billion, credit of VND14,507 billion and pre-tax profit of VND168 billion. PGBank's strategic shareholder is the Vietnam National Petroleum Group, Petrolimex, with 40% of charter capital.

According to the assessment of VietinBank's Board of Directors, PGBank is a bank with a great competitive advantage based on the sustainable customer base of the Petrolimex system and its member units; financial services provided at Petrolimex's gas station system and agents nationwide; strengths in foreign exchange and derivatives services...

According to the Board of Directors of Vietinbank, for these reasons, in order not to miss the opportunity to create a strategic growth step, the Board of Directors has negotiated with the Board of Directors of PGBank to prepare the premises for merger transactions. Recently, the Board of Directors of VietinBank has negotiated with the Board of Directors of PG Bank to prepare the premises for merger transactions. The Board of Directors has also hired an independent financial unit, Deloitte, and a legal consulting unit, Mayer Brown JSM, to draft a merger plan and a merger contract.

It is known that this morning PGBank also held a General Meeting of Shareholders and proposed to maintain the Board of Directors and Board of Supervisors.

According to VOV.VN