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Military Bank arm plans restructuring
Military Bank Securities plans to list after merging with another firm over the next 2-3 years, the company announced during its annual general meeting last week.
With support from its parent bank - the Military Bank (MB) - the brokerage will restructure itself and choose another securities firm to merge with.
After merging the company will retain the name, Military Securities Company and stick to its existing operational strategies.
The bank will still hold a dominant stake, while at the same time provide support to its offshoot in terms of network development, cross-selling and creating new products.
"The merger will strengthen our position in the market by making the most of our brand name, new technologies and customer base," said the company.
After merger with a much stronger asset base, operational efficiency will be enhanced which in turn will meet the requirements demanded by the State Securities Commission.
"Shareholders from both companies in the merger will benefit as soon as the new entity makes a profit," said a company spokesperson. "In addition, listing will greatly improve the liquidity of our shares."
The brokerage has not yet revealed the name of the company they are targeting for the merger.
Military Bank Securities expects to make VND353 billion (US$16.8 million) in turnover this year, equivalent to only 89 per cent of last year's revenue. However, gross profit is estimated to jump by 73 per cent to VND20.5 billion ($0.9 million).
Last year, the company exceeded its targets for revenue and profit by 27.5 per cent and 12 per cent respectively.
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