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Techcombank wants no foreign ownership, temporarily

Update: September, 01/2017 - 16:00
Techcombank’s main office in HCM City. — Photo
Viet Nam News

HÀ NỘI — The Vietnam Technological and Commercial Joint Stock Bank (Techcombank) has no foreign stakeholder following HSBC Bank plc’s divestment in July, and has requested shareholders to approve zero foreign ownership temporarily.

In its latest announcement to shareholders on August 30, even as Techcombank asked for approval for a temporary zero per cent foreign ownership, it emphasised that adjustments would be made soon. It expressed its intention to raise the level of foreign ownership later, but not higher than 30 per cent of its charter capital.

The deadline for shareholders’ feedbacks has been set at 17:00 hours on September 12.

After HSBC’s departure, Techcombank intends to actively seek a capable strategic investor in the near future.

Back in mid August, HSBC sold back all 172 million shares to Techcombank, to be used as treasury stocks at VNĐ23,445 (US$1.04) per share, according to the bank’s board of directors. The shares previously amounted to 19.4 per cent of Techcombank’s charter capital, and is now priced at a total of around VNĐ4 trillion ($178.1 million).

Recently, Techcombank submitted a plan to the State Securities Commission (SSC) for permission to issue another 500 million shares (stock code TCB) so as to increase its charter capital. These shares are to be sold in two phases, with 70 million shares up for sale at VNĐ30,000 ($1.33) per share during phase one from September to October, or whenever the SSC permits.

Phase two would see the sale of the remaining 430 million shares; its rate will be decided later by the bank’s board of directors, based on results of the first phase.

If both phases are successful, Techcombank will have increased its total charter capital to VNĐ13.87 trillion ($617.8 million).

Currently, Techcombank’s shares are being traded at VNĐ24,500 ($1.09) per share. As of August, it had purchased 172 million treasury stocks at an average price of VNĐ23,445 ($1.04) per stock. Because of this mass repurchase at a lower price than its book value, the banks’ shares are now gaining.

As per its financial report for the second quarter of 2017, Techcombank has earned a pre-tax revenue of VNĐ2.73 trillion ($121.6 million), making a net gain of up to VNĐ355 billion ($15.8 million) from the sale of 25.56 million shares of Vietnam Airlines.

Nevertheless, the bank’s receivables now amount to VNĐ12.68 trillion ($564.8 million), having increased by VNĐ1.86 trillion ($82.8 million) since the beginning of the year.

In the first six months of 2017, Techcombank reported total uncollectible debts of VNĐ2.74 trillion ($122 million), a 1.57 per cent rise from the end of 2016. The bank has also sold around VNĐ1.99 trillion ($88.6 million) worth of bad debts to the Vietnam Asset Management Company.

Techcombank’s board of directors has guaranteed its shareholders that it will strictly implement all necessary procedures in time, and under the supervision of the appropriate administrative authority. — VNS



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