Srisawad Corporation, a Thailand-based company in financial services, has proposed to acquire the loss-making Agribank subsidiary, Agribank Leasing Company No.1 (ALC1).
In response, the State Bank of Vietnam said they were previewing the proposal and would process with it after ALC 1’s restructuring plan is approved. According to the regulations, Srisawad must prove that its total assets are at least USD10bn in the preceding year, however, Srisawad has yet to meet this requirement.
Most of the shareholders of Srisawad Corporation are Vietnamese-Thai nationals. They have opened offices in Laos, and Vietnam’s Nghe An, Can Tho and HCM City. It has also been listed on the Thai stock exchange. They want to contribute to Vietnam and agreed to pay of ALC 1’s VND200bn (USD8.6m) charter capital, VND323bn debt to Agribank and will inherit all ALC 1’s debs.
In 2016, Srisawad already contacted with Agribank to discuss the transaction and signed a memorandum of understanding in July 2017 to pay for ALC 1’s charter capital and debts to Agribank. Srisawad asked the government to turn the ALC 1 from a finance leasing company to a general finance company to improve performance.
Last year, former directors of Vietnam Social Security (VSS) were detained for over allegations of economic mismanagement at VSS, Agribank’s ALC 1, ALC 2 and other related units. ALC 2 declared bankruptcy last July.
Source: Dtinews
