Inside a trading house of Sai Gon-Hanoi Securities JSC (SHS) in Hanoi. (Photo: cafef.vn)Hanoi (VNS/VNA) - The StateSecurities Commission (SSC) will enhance the quality of securities firms byshutting down and revoking licences of financially-weak companies to ensure thesector is healthy.
According to SSC Vice Chairman Pham HongSon, the SSC will have solutions to improve the quality of products andservices of securities firms, clean the equity market and provide the bestproducts and services for investors.
The securities sector has been shaken upsince 2012, curbing the number of securities firms to 77 from 104, includingeight business shutdowns, eight mergers and one acquisition deal between SaiGon-Hanoi Securities JSC (SHS) and Sai Gon-Hanoi Bank Securities JSC (SHBS).
“Securities firms are encouraged to carryout M&A deals to improve their own competency. The SSC will considerrevoking licences of those that are not financially capable and don’t meet itsrequirements,” he said.
“Big or small companies have their ownadvantages, so the real matter is to ensure they are financially capable sothat their supply for customers is sufficient.”
The takeover of SHS for SHBS is the firstacquisition deal among Vietnamese securities firms and the deal was approved inAugust 2018. SSC had prepared its legal framework for the deal, Son added.
“The acquisition will help the takeovercompany increase its capital capability and improve its position in themarket.”
“The SSC has received some filing forM&A deals among securities firms and the market regulator is reviewing thefeasibility of those files.”
SHS General Director Vu Duc Tien saidacquisition is the best solution for securities to increase capital andcompetitiveness in the market.
“Charter capital hike literally meansincreasing one company’s financial status and working capital while merger isapplied for two firms or more that are not strong enough and aim to form analliance to improve their competency,” he said.
Acquisition means one securities firm canincrease its charter capital and total assets, take advantage of the targetedfirm’s client network and improve its status on the market. This is acomprehensive solution for all businesses, according to Tien.
However, this method requires eachsecurities firm to understand its scope, market position and the targetedcompany, he said.
“The most difficult task is how to targetthe right company and convince the subject to be acquired. The acquisition ofSHS for SHBS is the first deal in Vietnam, so there are many issues that stillneed sorting out.”
On August 29, the SSC officially approvedSHS’s acquisition of SHBS, completing Vietnam’s first acquisition deal betweena listed securities firm and an unlisted one.
SHS shares, listed on the Hanoi StockExchange with ticker SHS, fell nearly 1.3 percent to close August 29 at 15,400 VND(0.68 USD) per share.
After the deal was completed, the chartercapital of SHS increased to 1.05 trillion VND (46.8 million USD) from 1trillion VND.
SHS issued nearly 5.4 million shares forSHBS shareholders in a share swap deal to convert 15 million shares of SHBSwith a ratio of 1:2.78.
The entire 5.4 million shares wererestricted from trading within a year from when the SSC approved the share swapdeal, which was March 23, 2018.-VNS/VNA
According to SSC Vice Chairman Pham HongSon, the SSC will have solutions to improve the quality of products andservices of securities firms, clean the equity market and provide the bestproducts and services for investors.
The securities sector has been shaken upsince 2012, curbing the number of securities firms to 77 from 104, includingeight business shutdowns, eight mergers and one acquisition deal between SaiGon-Hanoi Securities JSC (SHS) and Sai Gon-Hanoi Bank Securities JSC (SHBS).
“Securities firms are encouraged to carryout M&A deals to improve their own competency. The SSC will considerrevoking licences of those that are not financially capable and don’t meet itsrequirements,” he said.
“Big or small companies have their ownadvantages, so the real matter is to ensure they are financially capable sothat their supply for customers is sufficient.”
The takeover of SHS for SHBS is the firstacquisition deal among Vietnamese securities firms and the deal was approved inAugust 2018. SSC had prepared its legal framework for the deal, Son added.
“The acquisition will help the takeovercompany increase its capital capability and improve its position in themarket.”
“The SSC has received some filing forM&A deals among securities firms and the market regulator is reviewing thefeasibility of those files.”
SHS General Director Vu Duc Tien saidacquisition is the best solution for securities to increase capital andcompetitiveness in the market.
“Charter capital hike literally meansincreasing one company’s financial status and working capital while merger isapplied for two firms or more that are not strong enough and aim to form analliance to improve their competency,” he said.
Acquisition means one securities firm canincrease its charter capital and total assets, take advantage of the targetedfirm’s client network and improve its status on the market. This is acomprehensive solution for all businesses, according to Tien.
However, this method requires eachsecurities firm to understand its scope, market position and the targetedcompany, he said.
“The most difficult task is how to targetthe right company and convince the subject to be acquired. The acquisition ofSHS for SHBS is the first deal in Vietnam, so there are many issues that stillneed sorting out.”
On August 29, the SSC officially approvedSHS’s acquisition of SHBS, completing Vietnam’s first acquisition deal betweena listed securities firm and an unlisted one.
SHS shares, listed on the Hanoi StockExchange with ticker SHS, fell nearly 1.3 percent to close August 29 at 15,400 VND(0.68 USD) per share.
After the deal was completed, the chartercapital of SHS increased to 1.05 trillion VND (46.8 million USD) from 1trillion VND.
SHS issued nearly 5.4 million shares forSHBS shareholders in a share swap deal to convert 15 million shares of SHBSwith a ratio of 1:2.78.
The entire 5.4 million shares wererestricted from trading within a year from when the SSC approved the share swapdeal, which was March 23, 2018.-VNS/VNA
VNA
