Him Lam JSC sells entire stake in LienVietPostBank

Update: June, 28/2017 - 15:18
Transactions at a branch of LienVietPostBank in Hà Nội. The Him Lam JSC’s divestment from the bank would not affect to its business results this year, said Nguyễn Đức Hưởng, the bank's chairman. — Photo
Viet Nam News

HÀ NỘI — Liên Việt Post Joint Stock Commercial Bank (LienVietPostBank) has announced that Him Lam JSC is no longer a shareholder of the bank from June 23.

Previously, Him Lam was LienVietPostBank’s largest shareholder, with 96.77 million shares, equal to 14.98 per cent of the charter capital. Dương Công Minh, former chairman of LienVietPostBank, owns 99 per cent stake in the company. At VNĐ12,500 per share, Minh could earn VNĐ1.2 trillion (US$53 million) from the sale of nearly 97 million of the bank’s shares.

Nguyễn Đức Hưởng, chairman of the management board of LienVietPostBank, confirmed on Tuesday that Him Lam’s divestment would not affect to the bank’s business results. In fact, its results this year are expected to be better than the previous years.

After divestment, Việt Nam Post Corporation (VNPOST) has become the largest shareholder of LienVietPostBank, owning around 15 per cent of its charter capital. Recently, many senior officials of the bank registered to buy a large number of its shares, Hưởng said, adding that other members of the management board have continued to buy shares.

Hưởng and several others have increased their ownership to 6 per cent.

In another move, Phạm Doãn Sơn, vice-chairman and general director of LienVietPostBank, registered to directly buy another 6.5 million shares. Sơn had bought 5.1 million shares of the bank on June 7. He would have spent around VNĐ50 billion, at the rate of VNĐ10,000 to VNĐ10,200 per share, at the time.

The bank’s deputy general director Bùi Thái Hà has also registered to directly buy 5.2 million shares.

“The bank wants all its staff to own shares so that LienVietPostBank becomes the first bank in Việt Nam where all staffs are shareholders,” Hưởng told online newspaper Dân Trí, adding that the move is aimed at instilling a sense of ownership and responsibility towards the bank.

The bank is expected to trade on the Unlisted Public Company Market (UPCoM) from next month, thus preparing for its listing in the stock market, Hưởng revealed.

By the end of June, it is estimated that LienVietPostBank’s pre-tax profit will reach VNĐ900 billion ($39.6 million), 60 per cent of its annual target. With these results, the bank plans to pay a dividend of 12 per cent in 2017.

“We will also promote key plans in the future,” the chairman said. Specifically, the bank will continue to expand its network to communes across the country through the postal saving system, as well as make investments in e-banking.

Meanwhile, on June 30, Sacombank will hold its annual general meeting (AGM). In its latest statement, the bank said the current list of candidates for its board of directors (BOD) has not yet been approved and cannot be announced.

Earlier, Minh left the chairmanship of LienVietPostBank, while Hưởng returned to LienVietPostBank after putting his name on the list of candidates for Sacombank’s BOD.

Investors predict that Minh is more likely to be selected as a candidate for Sacombank’s BOD. However, to be able to participate in Sacombank’s restructuring process, Minh has to divest from LienVietPostBank to avoid cross-ownership, in accordance with the State Bank of Việt Nam’s regulations. — VNS