Vietcombank to offload 10% stake to maximum ten foreign investors

Vietcombank. Photo: Company's social media page

Vietcombank, Vietnam’s largest lender by market value, will offload a 10 per cent stake to a maximum of ten foreign investors in the first half of this year after it received government approval for the sale, it announced at its recent annual shareholders’ meeting.

The bank is in the process of identifying an asset valuer for the sale.

“The offer for sale has attracted many foreign investors, including Singaporean sovereign wealth fund GIC. Japan’s Mizuho Bank, the bank’s largest foreign shareholder with a 15 per cent stake, is also entitled to buy more shares to maintain its stakeholding at the bank,” Vietcombank CEO Pham Quang Dung told local media.

He also emphasized that the lender would favour foreign investors with a strong financial track record. Vietcombank is also considering allocating board seats to foreign investors after the stake sale.

The bank plans to sell its stake in Military Bank (MB) and Vietnam Export and Import Bank (Eximbank) by this quarter as part of its effort to pare its ownership in other credit institutions under a directive issued by the State Bank of Vietnam. Under the central bank’s Circular 36, commercial banks are allowed to hold stakes in a maximum of two other credit institutions, with the stake in each not exceeding 5 per cent of total equity.

The Hanoi-based bank now owns more than 126 million shares in MB (equivalent to 6.97 per cent of chartered capital) and over 101 million shares of Eximbank (equivalent to 8.2 per cent of chartered capital).

The bank earned approximately VND172 billion ($7.56 million) by offloading its entire stake in Ho Chi Minh City-based Orient Commercial Bank (OCB) last month.

Vietcombank on January 12 reported a pre-tax profit of more than VND11 trillion ($482.5 million) in 2017, a rise of 32.9 per cent during the same period in the previous year and 16 per cent higher than its target.

Also Read: 

Vietcombank earns $7.5m by divesting Orient Commercial Bank stake

Vietcombank to offer 10% stake to foreign investors, GIC among interested parties

Vietnam Digest: Toong, Indochina pact; Vietcombank pares OCB stake

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.