Sunday, October 2 2016

VietNamNews

Vietcombank to sell 7.73% stake

Update: August, 30/2016 - 01:00
Vietcombank’s headquarters in Hà Nội. - Photo vietq.vn
Viet Nam News

HÀ NỘI – Singapore’s sovereign wealth fund GIC is set to acquire a 7.73 per cent stake on a fully enlarged basis in Joint Stock Commercial Bank for Foreign Trade of Việt Nam (Vietcombank), Vietcombank announced yesterday.

The two entities signed a memorandum of agreement yesterday, under which GIC will purchase nearly 305.82 million new shares in Vietcombank, Việt Nam’s largest bank by market capitalisation.

The equity investment by GIC will increase Vietcombank’s charter capital, help the bank prepare for the implementation of BASEL II and maintain its position at the top of the Vietnamese banking sector.

GIC’s investment is part of Vietcombank’s private placement of nearly 359.8 million new shares.

The investment will be GIC’s first significant direct investment in a commercial bank in Việt Nam. GIC will also offer Vietcombank technical assistance and support.

“This investment reflects our confidence in Việt Nam’s long-term growth potential. We believe with Vietcombank’s strong management team and market positioning, the bank will be able to capitalise on the strong growth trajectory of the Việt Nam banking industry”, Amit Kunal, head of Direct Investments Group for Southeast Asia, Private Equity & Infrastructure, GIC, said.

“The agreement will represent an important milestone for long-term co-operation between GIC and Vietcombank. GIC’s strong reputation and experience will provide Vietcombank the support it needs to achieve its financial and business goals, both locally and internationally. In return, our market leadership and strong growth prospects offer GIC a potential upside in its investment in Vietcombank,” Nghiêm Xuân Thành, chairman of Vietcombank Board of Directors, said.

The terms and conditions of the transaction are subject to relevant regulatory authorities’ approvals and further negotiations between both parties, leading up to the signing of a share subscription agreement. The transaction is expected to be completed by the fourth quarter of 2016.

Credit Suisse acted as placement agent and financial advisor to Vietcombank on the transaction. — VNS

 

 

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