Vietnam Export-Import Commercial Joint Stock Bank (Eximbank) said it was authorized to represent shareholders who own more than 51% of Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank)’s stock and called for a new management board.

Eximbank said in its letter to Sacombank that shareholding structure of the latter has changed significantly after the stake sale of various major shareholders and the addition of new ones like Eximbank. Sacombank’s management board now represents a very small proportion of the bank’s stake, Eximbank said.

Besides, Sacombank has recently carried out a number of transactions that may affect the rights of its shareholders, including a 100 million-share buyback and capital withdrawal from Sacombank Securities Company (SBS), Eximbank said, adding that Sacombank hasn’t operated as efficiently as other banks of similar size.

In addition, Eximbank requested Sacombank to adjust up its 2012 profit target by at least 15% to VND4.025 trillion ($193 million).

During the preparation for the shareholders meeting, Eximbank asked Sacombank not to transfer the bank's assets, including the lender’s treasury stock.

Earlier, Eximbank and Sacombank leaders had a meeting to discuss about the issue on February 7 and 15, 2012. Within next week, the State Bank of Vietnam (SBV) may have a meeting with Eximbank and Sacombank on management board change proposal, said Dang Van Thanh, Chairman of Sacombank.

Sacombank, Vietnam’s fourth-largest publicly traded lender by assets, said its unconsolidated net profit increased 49.5% on year to VND439.6 billion ($20.4 million) in Q3/2011. As of December 31, 2011, Sacombank had total assets of VND140 trillion, versus VND141.8 trillion at the beginning of the year and total outstanding loans to customers of VND77.7 trillion, up 1.3%.

Eximbank, the country’s fifth-largest publicly traded lender, reported a non-consolidated net profit of VND1.02 trillion in Q4/2011, up 75.8% on year, it said in its financial statements posted on the Hochiminh Stock Exchange (HoSE)’s website. As of December 31, 2011, Eximbank had total assets of VND183.7 trillion and outstanding loans of VND74 trillion, up 40.1% and 19.9% from those as of end-2010, respectively.

Last August, Dragon Capital Group Ltd. decided to sell out 6.66% stake in Sacombank after holding it for 10 years. Sacombank then took defensive moves, registering to buy back 100 million shares for treasury stock.

After that, other major shareholders, including the Refrigeration Electrical Engineering Corporation (REE), ANZ Bank both said goodbye to Sacombank. On January 9, 2012, REE completed selling its 3.924% Sacombank stake to a group of local shareholders. One day later, ANZ also finished selling 9.61% stake in the bank to Eximbank.

Eximbank currently owns 9.7% of Sacombank after buying stake from Australia and New Zealand Banking Corporation (ANZ) last January, holding the largest stake in Sacombank.

 

Source Sophie/ StoxPlus