Habubank announces plan to merge with SHB

Habubank announced its draft plan to merge with the SHB.

Under the merger process, all responsibilities and duties to customers, partners, and employees of Habubank will be transferred to SHB, under the supervision and assistance of SBV.

The brand name Habubank will then no longer exist, as the name of the merged bank will be Saigon – Hanoi Bank Commercial Joint Stock Bank, which is set to have a total registered capital of nearly VND8.86 trillion or US$425.2 million, and total assets of VND100 trillion.

The merged credit institution expects to serve around 500,000 customers and have 5,000 employees working for it.

As both Habubank and SHB are listed on the Hanoi Stock Exchange (HNX), the exchange ratio of the two firms stocks is set as one HBB stock is equal to 0.75 SHB stock.

Habubank has opted for the merger plan since its business effectiveness, financial state, and asset quality have been adversely affected by the unsettled loan to Vinashin, the bank stated in its draft plan.