Vietcombank to offload $270m stake to GIC, Mizuho Bank

Vietcombank. Photo: Company's social media page

Joint Stock Commercial Bank for Foreign Trade of Vietnam, commonly known as Vietcombank, has received approval from the local securities watchdog to sell a $270-million stake to Singapore’s GIC and Japan’s Mizuho Bank.

It is understood that the additional share issuance will account for 3 per cent equity in Vietcombank. GIC will pick up a 2.55 per cent stake in the bank once the transaction is completed.

Mizuho Bank, which is the largest foreign investor in Vietcombank, will purchase the remaining share to retain its 15 per cent ownership of the Vietnamese lender.

Vietcombank had earlier planned to issue 360 million more shares, equivalent to 10 per cent of its current charter capital, in the upcoming private placement transaction. The bank is the country’s fourth biggest company by market capitalisation (around $8.6 billion).

Meanwhile, the Singapore sovereign fund had earlier wanted to acquire a 7.7 per cent interest in Vietcombank in 2016. However, the deal was postponed due to conflicts over prices.

GIC has been investing in a lot of Vietnam’s major businesses, including budget carrier Vietjet, diversified group Masan, Vincom Retail, Vinamilk, PAN Group and the recent IPOs of Techcombank and Vinhomes.

Top lenders in Vietnam have almost all roped in strategic investors. Vietinbank has Bank of Tokyo-Mitsubishi UFJ and International Finance Corporation as major shareholders. Meanwhile, BIDV is seeking investment from KEB Hana Bank. While Techcombank has not sold a strategic stake to an overseas investor, it has Warburg Pincus and GIC on its board.

Also Read:

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

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Singapore Reporter/s

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).

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

  • 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.