Vietnam Sells OceanBank to One Asian Investor - Report

Tuan Minh

13:57 23/06/2017

BizLIVE - This is part of the government's efforts to fix the bad debt-mired banking system.

Vietnam Sells OceanBank to One Asian Investor - Report

OceanBank has been reportedly sold to a foreign investor. Photo: tienphong.vn

The Vietnamese government has agreed to sell its wholly-owned OceanBank to a foreign investor from Asia as it seeks to revamp the bad debt-laden banking industry, the Dau Tu Chung Khoan (Securities Investment) newspaper cited a source with knowledge of the matter as saying.
The partner has been chosen to acquire OceanBank and papers are being finalized, the source added, without revealing the name of the buyer.
M&A in the Vietnamese banking industry is always deemed sensitive and the identity of the investors is normally not unveiled until the deal is completed.
The State Bank of Vietnam, the country’s central bank, in 2015 acquired three ailing banks namely OceanBank, GPBank and CBBank at zero cost, with an aim to prevent the contagious risk from affecting the others and to avoid a systematic collapse.
A foreign financial institution and a real estate company have approached GPBank, the newspaper reported.
Meanwhile, CBBank will restructure itself before getting merged into a domestic lender.
Prime Minister Nguyen Xuan Phuc in December 2016 said that the Asian Development Bank (ADB) and a Vietnam private partner were looking to acquire one of the three weak banks. During his visit to Japan earlier this month, PM Phuc invited a Japanese bank to buy out a Vietnamese lender.
DongA Bank, which is under special supervision by the central bank, is rumored to merge into Ho Chi Minh City-based HDBank.
A central bank inspector said in early 2017 that the banking authority will focus on handling weaknesses of five banks namely CBBank, Ocean Bank, GPBank, DongA Bank and Sacombank this year.
Chairman Do Thanh Son of OceanBank said in February that the bank’s health has improved, posting profits in 2015 and 2016.

TUAN MINH