Vietcombank to earn $42.7 million profit from divestments

Update: October, 09/2018 - 16:57
Vietcombank is estimated to gain profits of VNĐ395.4 billion through divestment at Eximbank. - VNA/VNS Photo
Viet Nam News

HÀ NỘI — Vietcombank is estimated to gain a profit of some VNĐ1 trillion (US$42.74 million) from its divestments at Military Bank (coded MBB) and Eximbank (coded EIB) this month.

Vietcombank is due to auction 53.4 million MBB shares on October 15 to reduce its holding at Military Bank to 4.5 per cent from the current 6.07 per cent.

Another auction of 45.37 million EIB shares will be held on October 22 to reduce Vietcombank’s holding at Eximbank from the current 8.19 per cent to 4.5 per cent.

According to analysts from the Saigon Securities Inc (SSI), at the initial price of VNĐ19,641 per MBB share, Vietcombank will gain revenue of nearly VNĐ1.05 trillion from the divestment, of which VNĐ607.6 billion will be profit.

The revenue and profit gained from Eximbank’s divestment will be VNĐ657.7 billion and VNĐ395.4 billion, respectively, SSI analysts estimated.

Foreign investors are allowed to buy a maximum of 606,245 EIB shares while they are not permitted to take part in the MBB auction, as the Military Bank’s foreign ownership has already hit its limit. According to the SBV’s current legal regulation, foreign ownership at banks is capped at 30 per cent.

Earlier, Vietcombank also divested all holdings at Orient Commercial Bank (OCB).

Offloading holdings at OCB, Military Bank and Eximbank are part of Vietcombank’s moves to comply with the central bank’s Circular 36, which allows commercial banks to hold shares in a maximum of two other credit institutions, with the stake in each not exceeding 5 per cent of the total charter capital of that institution.

On Tuesday, MBB closed at VNĐ23,050 while EIB stood at VNĐ14,100, down 2.9 per cent and 1.4 per cent, respectively. — VNS