Bao Viet denies rumours that HSBC wants out
HA NOI — Insurer Bao Viet Holdings (BVH) is currently denying reports from Reuters that strategic partner HSBC is seeking to divest from the company.
HSBC currently holds an 18-per-cent interest in BVH, worth an estimated US$250 million. However, the London-based bank is reportedly disappointed by this value which belies BVH's leading position in Viet Nam's insurance market.
Under the deal between HSBC and the Vietnamese back in 2007, HSBC vowed to hold its shares for five years. This year therefore marked the end of that commitment.
Reuters has reported that HSBC was in talks to sell its BVH stake to Japan's Sumitomo Life for $400 million, although sources told Reuters that other potential buyers might emerge.
But BVH chairman Le Quang Binh denied the reports, saying BVH "hasn't received any information from HSBC."
Since BVH was a listed company, an announcement would be made as soon as any such deal were confirmed, Binh said. Rumours, meanwhile, would negatively influence investors, he added. — VNS