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Public Bank To Acquire Remaining 50 Per Cent In VID Public Bank For RM245 Million

KUALAA LUMPUR, July 16 (Bernama) -- Public Bank Bhd (PBB) will acquire the remaining 50 per cent equity interests in VID Public Bank (VPB) for a total cash consideration of US$76.6 million (RM245 million).

In a filing to Bursa Malaysia, PBB said it had entered into a conditional equity capital transfer agreement (ECTA) with Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) for the acquisition.

VPB, which has a paid-up capital of US$62.5 million (RM200 million), commenced operations in Vietnam in 1992 and has always been profitable in its 22 years of operation.

With the signing of the ECTA, PBB said it would submit an application to the State Bank of Vietnam to convert VPB, a joint venture bank, into a 100 per cent foreign-owned bank in Vietnam.

Upon completion of the proposed acquisition, VPB will become a wholly-owned subsidiary of PBB.

PBB said that it had received the approval of Bank Negara Malaysia for the proposed acquisition.

The bank said the proposed acquisition was not expected to have a material effect on the earnings and net assets of PBB and its subsidiaries for the financial year ending Dec 31, 2014.

-- BERNAMA





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