Customers make transactions at Sacombank's Ha Noi branch. Sacombank denies a possible take-over initiated by Southern Bank. — VNA/VNS Photo Tran VietA member of the Sacombank board of management has denied that Southern Bank has any plans to take over Sacombank (STB) – rumours that arose after recent management changes at STB that included the appointment of a new general director and the naming of representatives from both Southern Bank and Eximbank (EIB) to STB's board.

"Changing high-ranking staff is normal in mergers and acquisitions," STB board member Kieu Huu Dung admitted to the website vietstock.vn. However, he added, the moves "demonstrate that the bank is making necessary changes to strengthen its management system in order to attract long-term foreign investment."

A group of new shareholders has invested in Sacombank over a relatively long period during which STB share prices have fluctuated between VND21,900 and VND11,900 per share.

The new investment would help ensure reasonable share values and future business competitiveness for the bank when the economy recovers, Dung said.

"Whether one uses the word ‘takeover' or ‘investment' in this case is not important," Dung said. "What matters is that we establish a well-performing entity, creating benefits for both old and new shareholders."

Sacombank has planned to increase its capital by 14 per cent in September and then sell a 15-per-cent stake to foreign investors, Dung acknowledged.

"The selection of foreign partners is now in progress, and we will announce the result as soon as it is achieved," he said.

Source: VNS