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VietNamNews

German firms raise stake in PVI

Update: July, 28/2012 - 09:05

 

Investors vote at the share auction at the PVI Holdings. — VNA/VNS Photo Pham Hau
HA NOI — HDI-Gerling Industrie Versicherung AG, an affiliate of Germany's Talanx Group, will increase its stake in PVI Holdings (PVI) from 25 per cent to 31.82 per cent, to this effect , an agreement was signed on July3, PVI announced on Thursday.

"Talanx Group's network will assist PVl in affirming our position in the Vietnamese insurance market and gaining an initial foothold in regional and international markets," said PVI chairman Nguyen Anh Tuan.

The parties agreed on a purchase price equal to the book value of PVI in a private placement, or a total of VND560 billion (around US$27 million).

The new funds would be primarily used to capitalise a new subsidiary to be established in the life insurance sector and to strengthen the capital base of subsidiaries PVI Re and PVI Insurance.

With the larger stake, HDI-Gerling Industrie will be able to nominate three members to PVI's board of directors and two members to the Supervisory Board. Up to now, it has only named one member to each.

Foreign ownership of a listed company in Viet Nam is limited by law to 49 per cent. Following this transaction, the shareholdings of foreign investors in PVI would amount to a combined total of 48.9 per cent.

The transaction is subject to approvals from regulatory authorities.

HDI-Gerling Industrie entered into a strategic partnership with PVI Holdings in August last year. HDI-Gerling Industrie board member Jens Wohlthat said that PVI "have enabled us to gain good access to the growing Vietnamese market." — VNS

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