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.