SINGAPORE : United Overseas Bank (UOB) says it is in talks that may lead to a strategic investment in Vietnam's Southern Commercial Joint Stock Bank or Southern Bank.

It has entered into a Heads of Agreement with the bank.

Parties are now negotiating the definitive agreements for the investment and UOB is currently conducting due diligence on Southern Bank.

Southern Bank is a joint stock commercial bank with assets of about US$498 million.

If UOB does go ahead with the investment, it will be following in the footsteps of another Singapore bank.

Oversea-Chinese Banking Corp bought a 10 percent stake in Vietnam Joint-Stock Commercial Bank for Private Enterprises for about S$25 million last year. - CNA /ls