SBV approves Techcombank plan to acquire VCFC.
The Governor of the State Bank of Vietnam (SBV) has given initial approval to the takeover of the Vietnam Chemical Finance JSC (VCFC) by Techcombank. The takeover must be completed within 90 days of the Governor's approval of December 18 and Techcombank must complete an acquisition profile for submission to the central bank.
The decision was issued bases on a proposal from both parties.
The SBV requires Techcombank to implement all of the criteria in the decision and in Paragraph 2 of Article 19 of Circular No.04/2010/TT-NHNN, in order to gain official approval from the SBV for the takeover.
If Techcombank cannot buy 100 per cent of VCFC's outstanding shares within 90 days, as required, the bank must ensure compliance with the Law on Credit Institutions regarding number of shareholders, organizational restructure, reform governance, and administrative activities. After acquiring 100 per cent of the outstanding shares of VCFC, the new finance institution need to be transformed into a limited company.
The takeover deal could be completed in the first quarter of 2015 and expand it involvement in the personal loan market.