OGC could lose $139m after merger
OGC could lose $139m after merger
Ocean Group Joint Stock Company (OGC) may lose nearly VND3 trillion (US$139 million) after the State Bank of Viet Nam completed a merger for OceanBank for VND0 last month, Tri Thuc Tre (Young Intellectual) online newspaper reported .
OGC may lose all of its VND971 billion ($45 million) twenty-per-cent stake in OceanBank, according to OceanBank's combined financial report for last year.
OGC may also be unable to collect VND1.14 trillion ($52.8 million) in short-term and long-term receivables from VNT Company, that also owns a twenty per cent stake in OceanBank.
VNT Company is owned by Ha Van Tham's family, former president of OceanBank's board of directors, who was arrested and accused of illegal crexdit activities last year.
At the end of 2013, VNT Company had VND737 billion ($34 million) in equity. After the SBV purchased OceanBank for VND0, VNT Company may also lose its entire stake in OceanBank and the company's equity may become negative.
In addition, OGC may not be able to collect receivables of VND830 billion ($38.4 million) from Song Da Corporation, that owns 6.65 per cent of OceanBank.
Ocean Group also has to make an immediate payback of VND752 billion ($34.8 million) to OceanBank. Of this debt, OGC borrowed VND658 billion ($30.4 million) from OceanBank.
Ocean Group has VND413 billion ($19 million) in the form of guaranteed assets and its payables to OceanBank are VND94 billion ($4.3 million).
Meanwhile, OGC's total credit and short-term financial investments in other financial institutes reach VND2.28 trillion ($105.5 million), including VND1.96 trillion ($90.7 million) of low-liquidity short-term investments in stocks and other assets. OGC also has total receivables of VND43 billion ($2 million) from OceanBank.
