Monday, October 22 2018

VietNamNews

Vietcombank to cut stake in Eximbank

Update: September, 22/2018 - 09:00
The Joint Stock Commercial Bank for Foreign Trade of Việt Nam (Vietcombank) has offered to sell 45.6 million shares it is holding in the Việt Nam Export-Import Joint Stock Commercial Bank (Eximbank).— Photo dantri.com.vn

HÀ NỘI — The Joint Stock Commercial Bank for Foreign Trade of Việt Nam (Vietcombank) has offered to sell 45.6 million shares it is holding in the Việt Nam Export-Import Joint Stock Commercial Bank (Eximbank).

Vietcombank plans to sell the shares at nearly VNĐ14,500 (US$0.64) per share and expects it would receive at least VNĐ661 billion ($29.4 million) from the deal.

Vietcombank holds more than 101 million shares of Eximbank, equal to an 8.24 per cent stake. If the deal is successfully carried out, Vietcombank will cut its ownership in Eximbank to below 5 per cent.

The deal aims to help Vietcombank comply with Circular 36, released in November 2014 by the State Bank of Việt Nam and regulating a below-5-per-cent-stake held by a financial institution in another.

Vietcombank and Eximbank shares are listed on the HCM Stock Exchange with ticker VCB and EIB, respectively.

Vietcombank shares gained 1.7 per cent to close Friday at VNĐ64,400 per share while Eximbank shares dropped 1.1 per cent to VNĐ14,050 per share.

The auction will be held at the Hà Nội Stock Exchange on October 22.

Vietcombank has sold parts of its stakes in some financial institution such as SaigonBank and Cement Financial Company (CFC), and offloaded all its shares in Orient Commercial Bank (OCB).

Last week, Vietcombank announced it would put 53.4 million shares of Military Bank (MB) up for auction on October 12 at a starting price of VNĐ19,641 apiece.

If the divestment succeeds, Vietcombank will earn at least VNĐ1.5 trillion ($63.29 million).

The divestment will help the bank reduce its holdings at MB from the current 6.97 per cent to 4.5 per cent, equal to 97.1 million shares.

Vietcombank to raise capital

Vietcombank has gained approval of the State Bank of Việt Nam that allows Việt Nam’s largest bank by market capitalisation to increase its charter capital to VNĐ39.57 trillion from the current VNĐ36 trillion.

The capital increase plan was approved by the bank’s shareholders at its annual shareholder meeting organised in late April.

IFC eyes divestment in Vietinbank

The World Bank’s International Finance Corporation (IFC) is looking for potential partners to sell its ownership in the Việt Nam Joint Stock Commercial Bank for Industry and Trade (Vietinbank).

IFC holds nearly 299 million shares, or an 8.02 per cent stake, in Vietinbank, Bloomberg reported on Thursday.

The World Bank’s unit started investing in Vietinbank in 2011 through a VNĐ1.85-trillion purchase of 168 million Vietinbank shares (10 per cent of capital).

Both IFC and Vietinbank declined to comment on the matter.

The State Bank of Việt Nam holds 64.46 per cent of capital in Vietinbank. The Bank of Tokyo-Mitsubishi UFJ is the second biggest shareholder with a 19.73 per cent stake.

Vietinbank lists on the HCM Stock Exchange with ticker CTG, gaining 2.4 per cent to close Friday at VNĐ28,100 per share. — VNS

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