AGM of Mekong Development Bank to see documents on Maritime Bank merger and resignation letters of Chairman and Deputy General Director.
The Mekong Development Bank (MDB) has released official documents in preparation for its 2015 annual general meeting, which include the resignation letters of Chairman Nguyen Manh Quan and Deputy General Director Do Lam Dien.
The documents also contain its merger plans with Maritime Bank, which requires shareholder approval. MDB plans to issue 375 million additional shares at a swap ratio of 1:1 with Maritime Bank. Post-merger the entity will bear the Maritime Bank name, with total charter capital of VND11.75 trillion ($539.2 million), or 1.17 million shares. The boards of management at both banks have been working on the merger plan, which will be submitted to the Governor of State Bank of Vietnam (SBV) for approval, with both bank’s expecting this to happen sometime during the second quarter.
Regarding the existing foreign strategic shareholder of MDB, Fullerton Financial Holdings (FFH), SBV has issued an official letter permitting the bank to re-purchase the shares FFH holds, in accordance with existing law.
In its plans for 2015, the bank will tell shareholders it targets increasing total assets by 28 per cent compared to 2014, reaching VND9.47 billion ($434.57 million), raise mobilized capital by 14 per cent to VND1.7 trillion ($78.01 million), increase outstanding credit by 7 per cent to VND5.73 trillion ($262.94 million), keep non-performing loan at less than 3 per cent, and earn profit before tax of VND276 billion ($12.66 million), almost double the result in 2014.
It has no plans to pay a dividend this year.