DaiABank - HD Bank: The "marriage" of happiness?

► There has been quite a long time to learn each other, but they are happy "in a home"? ...

                                         Transactions at HD Bank and DaiABank.



After the Annual General Meeting of Shareholders in 2013 was two days 15/6, a number of important positions in the governance structure, operating controls and Dai A Bank (DaiABank) has changed and supplemented. A triangular relationship has been established between the bank with HCM Development Bank (HD Bank) and SOVI Holdings.

It is the position of Chairman of the Board, CEO DaiABank, the Supervisory Board members who are former or SOVI HD Bank.

With these changes, along with the results of the second meeting, the merger process DaiABank with HD Bank has made another important step. The official "in a home" is probably just the time and the technical steps in accordance with law.


There are times of stress ...

The ability to "marriage" between the two banks had attracted the attention of the market in January 10/2012. On the threshold of events, public opinion emerging cross-ownership issues in the system of credit institutions Vietnam; investors to discuss divestment transaction of some clues, and probably not random context is associated with a disturbance of some well-known individuals in the industry ...

10/2012 and HD Bank DaiABank memorandum signed cooperative principles. Few days later, the State Bank has agreed in writing of the guidelines merger between the two parties. Also note that this was the plan voluntarily restructuring, other than mandatory, so it may be the destination or not, associated with the right to self-determination.

Therefore, negotiations, negotiations concerning the transfer between investors and large shareholders prolonged, sometimes even stress.

According to the understanding of Bloomberg, just ahead of the annual meeting of shareholders in 2013, stakeholders and leaders State Bank has also sit back, but a failed congress. So far, the main cause has been considered in the structure of the program, lack of content changes, additional senior personnel that a group of major shareholders (and new) unwanted (?).

Before and after the congress, talk with Bloomberg, a number of shareholders have expressed DaiABank said tension in some transfer transactions is crucial, yet to find a common voice. Even before it has doubts about the financial capability of the new investors. This is one of the reasons that the progress of the restructuring plan DaiABank lasts.

"Cooperation growth and development is a common desire. But note that this is voluntary and there DaiABank its position, not sale or merger at any cost ", is also a shareholder and officer of DaiABank said, and each refers to the ability of the shadow a third partner.

English is generally above about benefits. Meanwhile, stress is also a psychological component expression in some bank staff is. Chat with Bloomberg after a congress, an officer said DaiABank, HD Bank plans to cooperate with and information on the market is causing internal psychological disadvantage certain. They fear business is affected, customers may concern.

Furthermore, assuming "marriage" success, leadership structure coupling two bodies when things turn out if desired, when the executive's hard to have too many members, or two equal leaders in a block? Or income of workers will change how? These questions are completely different position to accept a forced bank merger, or the merger only.


Inevitable path?
 
General Meeting of Shareholders in 2013 was successful both times. A few days later, a number of key positions have changed. Triangular relationship between DaiABank, HD Bank and SOVI officially established before the public eye.

Bloomberg's sources said the investor group - The new shareholders have ownership rate of 50% in order to promote their goals. Perhaps DaiABank merging with HD Bank is only time when a common voice among the major shareholders have achieved. It aims to be the "marriage" of following or not happy?

DaiABank is a small bank, the charter capital of VND 3,100 billion, total assets at the end of 2012 was 17,910 billion, with 64 outlets. Sharing the context of the industry, but in this bank operations more difficult when profits fell sharply compared to the previous year (about 50%) and bad debt at high levels (5.28%, an increase of 473.91% ).

Besides the size and competitiveness modest operations revealed difficulties, a more typical demand for stronger cooperation in this bank is the only increase in 2012 was only 1 point transactions.

Shaking hands with HD Bank, they will have the same size of a "big" in the system. Assuming the merger is successful, then the bank will have charter capital of VND 8,100 billion, total assets of 70,000 billion. And they have a partnership with the business results are quite impressive in 2012 (the HD Bank's business targets are exceeded, and the basic financial indices according to information published quite good compared to many banks Other trade).

Or that an officer detailed DaiABank mention when talking to Bloomberg: Hanoi, if the merger would be a good complement to the network, while the local banks will be important enough without smothering overlap is to be eliminated or collected.

However, a leader of DaiABank said, though he is small, but banks have strong governance and control. Many years operating stability, efficiency even years longer than the HD Bank. So here is the merger of two powerful resources together to create new advantages to greater competition in the market.

However, the leaders said that cooperation with other banks is inevitable path of development. The remaining problem is both sides happy? There are many factors, but much will depend on the capacity management, real leaders of the structure after the merger. Because both from a small and medium banks, "overnight" become a "big" and whether being overwhelmed and short-scale power management, operating or not.

Despite many difficulties and challenges ahead, but this situation DaiABank merged with HD Bank has nearly finalized. But still need a key technical conditions: the two sides will continue to hold the extraordinary meeting of shareholders, and under paragraph 3, section c of the Law on Credit Institutions, must be representative of the Shareholders on 65 % of voting rights of all shareholders to attend the meeting, shall be through the merger.