The highly speculated return of Sacombank’s ‘father’
The highly speculated return of Sacombank’s ‘father’
It is common practice for personnel to emerge as a topic that attracts the most attention from financial investors before the annual general meeting of any bank.
This year, Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) is the bank that earns the most spotlight with the appearance of many investors with strong financial strength, especially the presence of Mr. Dang Van Thanh, the lender’s “father”.
Officially returning after more than five years of absence in the financial and banking market, Mr. Dang Van Thanh and a group of foreign shareholders have been considered to hold a number of advantages over other candidates.
With more than 20 years of experience working at the bank between 1991 and 2012, Thanh is considered the ‘captain’ who promoted the Sacombank brand name in both domestic and international markets.
Thanh’s decision to participate in Sacombank's restructuring came from the support and trust of existing shareholders and prestigious international partners, particularly the Evercore Group and Redsun Capital Limited.
Evercore Group is a New York-based investment banking firm listed on the New York Stock Exchange with a market cap of US$2.8 billion, while Redsun Capital Limited is a consulting firm specializing in M & A.
Thanh Thanh Cong Corporation (TTC) was the place where he and his family cut their entrepreneurial teeth in 1979, before entering the finance and banking sector.
The corporation operates in many fields, including real estate, energy, molasse, hospitality, and education. TTC is also the business where Thanh focused on developing with his family after the management transferring at Sacombank in 2012.
At the time of Mr. Thanh’s management transfer, May 2012, there was a lot of rumors surrounding the banking operations, especially corporate loans related to TTC Group, which greatly affected the reputation of his family.
The rumors continued until April 2013, when a Sacombank representative released the official information that these loans are all in-term debts and have good credit history.
To date, Sacombank brand, with the solid foundation accumulated throughout the 20 years under Thanh's participation, remains a bright spot for investors and customers to consider.
With the current financial strength, the group of investors - EverCorp and Dang Van Thanh, has proposed to supplement the financial capacity of Sacombank by increasing its chartered capital by VND20,600 billion to fundamentally improve the safety activity indicators.
The next step is to set up a debt settlement committee focusing on resolving bad debts and recovering mortgaged assets, and using the available income sources to make provisions for bad debts.
Evercore has been recently authorized by competent authorities to access data, review and evaluate the performance of Sacombank to accurately assess the current situation of the lender, according to a source with knowledge of the matter.
This will be the basis for the elaboration of a detailed, precise and specific restructuring plan, as well as proposals of specific mechanisms if necessary.
It can be said that Sacombank today remains a name worth watching for investors, domestic and international customers, thanks to the advantages of operating platform and potential for retail banking development.
Therefore, this restructuring plan poses an urgent requirement for the development of a professional, transparent, qualified, and capable administrative system to address the restructuring and financing efforts.
This is considered a special advantage for Mr. Dang Van Thanh, who has successfully applied the ‘executive management formula’ in areas he has invested in.
