Maybank has signed an agreement with An Binh Commercial Joint Stock Bank for the acquisition by Maybank of 15% of the charter capital of ABBank for a cash consideration of approximately MYR430 million.
Maybank may also take up an additional 5% equity in the near future, pending approval by the Vietnam government. Current regulations in Vietnam allow foreign banks to own up to 15% equity in a Vietnamese bank with the possibility of increasing the stake to 20% subject to approval by the government.
Upon completion of the agreement, Maybank will emerge as a major shareholder of ABBank. Maybank has also entered into a strategic cooperation and knowledge transfer agreement with ABBank to reflect the long term relationship and strategic cooperation between Maybank and ABBank.
This will see Maybank sharing its knowledge in improving corporate governance and internal controls, apart from providing technical assistance in consumer banking, network, treasury, business banking, risk management, human resource and information technology.
Tan Basir, chairman of Maybank, said: The proposed acquisition accelerates our growth plans in Vietnam. It is a strategic investment that we are making to expand our presence in Vietnam in line with our continuous effort to establish a stronger foothold in the regional markets.