The Future of Thai Company’s Acquisition of ALC I of Agribank Uncertain

Diep Nguyen

16:19 21/02/2019

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Currently, the restructuring plan for ALC I has not been approved, thus the request from the Thai partner will only be assessed after the restructuring plan has been finalized.

The Future of Thai Company’s Acquisition of ALC I of Agribank Uncertain

Photo: Agribank

The Thai financial firm Srisawad Corporation is seeking to acquire the Finance Leasing Company I (ALC I) belonging to Vietnam Bank for Agriculture and Rural Development (Agribank) at the cost which is estimated at VND 523 billion, equivalent to $22.45 million.
The spokesperson from Srisawad said that the company is waiting for approval from the State Bank of Vietnam (SBV) for the deal.
The SBV has responded to the request from the Srisawad. In which, the SBV supervising body said that SBV is considering the request from Srisawad and related matters. Currently, the restructuring plan for ALC I has not been approved, thus the request from the Thai partner will only be assessed after the restructuring plan has been finalized.
This means that Srisawad Corporation and other companies will still have the chance to jump in the ALC I deal in the future. 
Agribank announced the sale of ALC I, then invited investors to acquire the company. By the end of 2017, the accumulated losses of ALC I surged up to VND 714 billion, liabilities VND 394 billion, according to Agribank’s financial statements. 
Negotiations were then followed up, and in July 2017, Srisawad Corporation and Agribank signed the memorandum of understanding. The Thai company agreed to pay a total of VND 523 billion to acquire the Agribank subsidiary, including all of ALC I’s 200 billion VND charter capital and the 323 billion VND original debt that ALC I borrowed from Agribank.
Many financial experts said that the foreign investors highly appreciate the potentials of development in Vietnam’s consumer finance. The total scale of the market may reach $ 44 billion this year, mainly by the surge in consumer spending, the widening urbanization and the strict lending principles from the local banks.

DIEP NGUYEN

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