VIB buys back treasury stocks, cancels capital increase plan

Update: October, 09/2017 - 14:00
VIB will repurchase treasury stocks not exceeding 10.1 per cent of its charter capital. — Photo
Viet Nam News

HÀ NỘI  Việt Nam International Commercial Joint Stock Bank (VIB) will buy back treasury stocks not exceeding 10.1 per cent of its current charter capital and cancel the plan to increase charter capital.

The bank got approval from its shareholders late last week.

Accordingly, VIB will repurchase 57 million treasury stocks in case the capital adequacy ratio is maintained at the level higher than the regulated minimum one. Treasury stock repurchasing will be implemented by December 31.

At the price of VNĐ22,000 (US$0.96) per share on UPCoM on Monday, VIB needs to spend an estimated sum of more than VNĐ1.2 trillion to buy back treasury stocks.

Previously, VIB said that repurchasing stocks was not related to the stake of the Commonwealth Bank of Australia at VIB, which was at 20 per cent.

In addition, the bank cancelled the plan to increase charter capital, approved at its annual shareholder meeting early this year.

Previously, at its annual shareholder meeting, VIB’s shareholders approved the plan to increase charter capital from VNĐ5.644 trillion to VNĐ7.902 trillion.  VNS