Aeon Financial Service has resolved a dispute over its acquisition of Post and Telecommunication Finance ( PTF ) from Hanoi-headquartered SeABank, saying it will continue to support the growth of the Vietnamese financial subsidiary.

The decision reverses an earlier announcement this June, in which Aeon Financial said its merger and acquisition deal with the Vietnamese bank was “invalid”.

The financial services company, part of Japan’s largest retail group Aeon, completed its acquisition of PTF from SeABank in February for approximately 26.2 billion yen ( US$181.8 million ). However, on June 6, Aeon Financial said the deal was invalid due to "inappropriate accounting transactions".

Aeon Financial stated on July 31 that it had "successfully reached an agreement" with SeABank to "fully resolve this matter". According to the company, comprehensive discussions have taken place since June 6 to address the issue constructively.

Cleared of wrongdoings

Through these detailed discussions, Aeon Financial "has clearly confirmed that SeABank neither participated in nor had knowledge of these loan-loss provision discrepancies", says the Japanese firm.

As a result, both parties have agreed to support PTF's business growth and debt resolution. They have also committed to jointly fostering PTF's business expansion.

"Acknowledging this cooperative approach, AFS ( Aeon Financial Service ) has decided to withdraw its preliminary notice related to reconsideration of the transaction," the Japanese firm says. "AFS reaffirms its intention to manage and develop PTF sustainably and long-term, leveraging its 100% ownership and PTF’s financial licence, to contribute positively to Vietnam’s robust economic prospects.”.

The company also says it has successfully updated and reconstructed PTF's business strategy. The broader financial needs and service opportunities generated by Aeon Group’s ongoing business operations remain robust and unaffected by the dispute.

Aeon Financial reiterates the group's strong, long-term commitment to Vietnam's economic growth and social development. "We will continue investing resources and contributing actively to enhancing the quality of life for the Vietnamese people, further strengthening the positive and continuing relationship between Vietnam and Japan," the company adds.