Amid economic difficulties and securities market slump, many owners of securities firms have been trying to sell their companies.
Share prices decline sharply amid market slump
Most of these activities have been conducted behind closed doors, and only announced after the deals have been made.
A manager of one listed securities firm, who wished to remain anonymous, said, “Before the two sides complete all legal procedures they prefer keep deals secret.”
Challenges
While the securities market has long been facing difficulties, those who provide securities trading services, especially smaller securities firms are finding it hard to survive.
The owners of many securities firms have been gradually losing their patience with the market, facing increasing losses.
Amid such challenges, securities firm owners have often faced only the option filing for bankruptcy or seeking partners to renew their capital.
The anonymous securities firm manager said that, even though his company made a profit this year, shareholders have still been withdrawing because of lack of confidence in the market as a whole.
He said that his company and a partner have reached an agreement, and are in the process of negotiating.
If the deal is unsuccessful, the firm would file for bankruptcy and compensate shareholders to the tune of around VND4,000 per share, compared to the current market price of VND2,000 per share, he added.
Possible trend
According to some insiders, many owners of securities firms want to pull out of the market.
Some potential buyers see a unique opportunity to acquire securities firms on the cheap.
The Ministry of Finance’s recently issued Circular 210/2012/TT-BTC to replace the Decision 27/2007/QĐ-BTC on tightened conditions for securities trading has forced smaller and "incompetent" securities firms to brink of bankruptcy, creating a buyer's market.
Still, buyers have remained picky. Most have sought out those companies with chartered capital of less than VND100 billion (USD4.8 million), have a low bad debt ratio and have been transparent in their accounting methods.
Many experts say that there would be fewer securities firms in the near future, and several transfers of ownership.
