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Thai Group wants to acquire Agribank's company

Wednesday - 20/02/2019 18:25
Thai side is willing to spend over VND 500 billion to buy all ALC I capital - finance leasing company.
The State Bank recently issued a written response to the proposal of Bangkok-based Srisawad Corporation Ltd. on the acquisition of 100% of the Bank of Agriculture and Rural Development (Agribank) capital at the Leasing Company. I - ALC I.

Accordingly, Thai enterprises contacted and negotiated with Agribank since mid-2016. The two sides have hired the asset appraisal unit and signed a memorandum of understanding with two main contents. First, Srisawad Corporation paid Agribank 523 billion dong to own all of ALC I's capital, of which 200 billion dong was to repay the charter capital and the rest was ALC I original debt borrowed from this bank. This amount may change when the two parties confirm the final data to sign the official contract. Second, Srisawad Corporation will inherit all debts at the time of signing the memorandum.

Due to failure to meet the total asset conditions of the previous year of 10 billion USD according to the Circular stipulating the licensing, organization and operation of non-bank credit institutions, but Srisawad Corporation still proposed The State Bank approved to participate in restructuring Agribank subsidiary. At the same time, it is proposed to convert the type of business from a finance leasing company into a general finance company in order to "operate more efficiently".

Agribank then verified the scheme of Srisawad Corporation and submitted it to the State Bank from September 2018, but not yet approved because it is continuing to consider issues related to ALC I. restructuring.

According to Agribank's financial statements, as at December 31, 2017, ALC I is accumulating losses of VND 714 billion and negative equity of VND 437 billion. Liabilities are 394 billion, of which interest-bearing debt accounts for nearly 48%. Although ALC I negotiated with its partners for payment and debt structure, the auditor assessed these things, leading to doubts about the company's ability to operate continuously.

Previously, ALC II Finance Leasing Company II also owned 100% of charter capital by Agribank and filed with the court to declare bankruptcy and was approved in July 2018. The State Bank later also revoked its license for establishment and operation.

Author: Translated by CoPhieuViet.Com

Source: Vnexpress newspaper

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