MBV sharply reduces losses after mandatory transfer to MB, may sell 100% of capital to foreign investors

According to the report on the acceptance of compulsory transfer and organization of compulsory transfer plan of MB, after OceanBank was transferred to MB, it was renamed as Vietnam Modern One Member Limited Liability Bank (abbreviated as MBV). The legal form was also changed from a one-member limited liability company owned by the State (holding 100% of the charter capital) to a one-member limited liability company owned by MB.

At the time of compulsory transfer to MB, Oceanbank had 101 transaction points (21 branches, 80 transaction offices) present in 19 provinces/cities; Total assets reached 39,815 billion VND; outstanding loans to customers reached 32,936 billion VND; capital mobilization from customers reached 44,605 ​​billion VND; accumulated loss ~19,628 billion VND.

After being forced to transfer to MB, as of December 31, 2024, MBV had total assets of VND 46,232 billion, outstanding loans to customers of VND 34,795 billion, capital mobilization from customers of VND 46,958 billion, accumulated losses of VND (15,688) billion. Thus, after a short period of forced transfer to MB, MBV's accumulated losses have decreased by nearly VND 4,000 billion.
MBV's goal is to become a modern digital bank, an advanced, high-quality, and highly effective risk management platform; overcome all accumulated losses; the actual value of charter capital is higher than the legal capital; after completing the Compulsory Transfer Plan, MBV basically complies with the limits and safety assurance ratios as prescribed by the Law on Credit Institutions.
In addition, MB and a number of other credit institutions are continuing to research and propose to the Government and the State Bank to implement additional support measures and necessary solutions for the Compulsory Transfer Plan under Articles 182 and 185 of the Law on Credit Institutions 2024, ensuring the feasibility and progress of completing the Compulsory Transfer Plan.

At the 2025 Annual General Meeting of Shareholders, MB's Board of Directors will submit to shareholders for approval the mandatory transfer and organize and implement the mandatory transfer plan.

Accordingly, MB will contribute charter capital to MBV with a level not exceeding VND 5,000 billion according to the Compulsory Transfer Plan (amended and supplemented from time to time), Resolution 10/NQ-MB-ĐHĐCĐ dated April 15, 2022, legal regulations, approval of competent State agencies and actual implementation.

Based on the approved, amended, supplemented CGBB Plan and legal regulations, MBV is allowed to convert its legal form to become a limited liability bank with two or more members or a joint venture bank or a 100% foreign-owned commercial bank or a joint stock commercial bank through implementing one or several plans for capital contribution, capital increase, and handling of capital contributions and shares, including the following plans:

One is to mobilize additional capital contributions from domestic and foreign investors and convert into a limited liability bank with two or more members.

Second is to transfer to domestic and foreign investors and convert into a joint venture bank in the form of a limited liability company with two or more members.

Third is to convert into a joint stock commercial bank through one or a combination of several options: Increase charter capital through mobilization from other domestic and foreign individuals and organizations (including the issuance of convertible bonds); issue, offer for sale, transfer capital contributions; other forms in accordance with legal regulations.

Fourth is to transfer 100% to foreign investors and convert into a 100% foreign-owned commercial bank.

The fifth is to merge into MB or choose other options/forms in accordance with legal regulations and the CGBB Plan approved, amended and supplemented from time to time.

MB's Board of Directors proposes that shareholders assign the Board of Directors to research, find potential investors, decide on specific contents, implement the conversion of MBV's legal form and plans for capital contribution, capital increase, and handling of capital contributions and shares at the time according to the CGBB Plan (approved and amended/supplemented), actual implementation and legal regulations of each period.

At the same time, decide on the signing and execution of other contracts and transactions between MB and MBV with a value of 20% or more of MB's charter capital recorded in the most recent audited financial statements, according to the approved and amended/supplemented compulsory transfer plan, and legal regulations from time to time.

Source: https://baodautu.vn/mbv-giam-manh-lo-sau-khi-chuyen-giao-bat-buoc-cho-mb-co-the-ban-100-von-cho-nha-dau-tu-ngoai-d265684.html