Southeast Asia Joint Stock Commercial Bank purchases Post and Telecommunication Finance Company

According to information from local press Infonet, Vietnam Posts and Telecommunications Group (VNPT) is preparing a dossier submitted to the State Bank of Vietnam and the Ministry of Information and Communications for the official signing of a contract to resell Post and Telecommunication Finance Company (PTF) to the Southeast Asia Bank (SeAbank).

Previously, according to VNPT's announcement, the auction of PTF was held on on February 1 with the starting price of VND500 billion (roughly US$22 million) which is the charter capital of this company in 1998.

However, according to the information disclosure to investors before the auction, the equity of PTF in mid-2017 is only VND414 million (equipvalent to US$18.200).

According to this company's report, PTF had a total profit of VND104 billion (roughly US$4.5 million) from 2013 to 2016. In the first six months of 2017, PTF's profit was estimated at VND31 billion (US$1.3 million).

This means in the period of time before 2013, PTF had negative equity because this company can not fulfil the functions of a credit institution in its credit and investment activities due to its low operational safety.

In addition to the loss of nearly all chartered capital, PTF also had debts of VND347 billion (US$15.3 million).

Regarding VNPT's divestment in its joint stock companies, the chairman of VNPT's board of members said that in January of this year, this group held auctions for six categories of which four auctions were failed. Recently, VNPT's major investment in Maritime Bank was not put up for auction because no investor registered.