Vietcombank earns $7.5m by divesting Orient Commercial Bank stake

Photo source: Internet Archive

Vietnam’s largest lender by market value, Vietcombank (VCB), has earned approximately VND172 billion ($7.56 million) by offloading its entire stake in Ho Chi Minh City-based Orient Commercial Bank (OCB).

A Hanoi Stock Exchange announcement said 667 investors, including eight organizations, participated in the auction of 6.67 million OCB shares that saw the highest bid at VND28,500 ($1.26) per share.

VCB in March announced that it will offload the OCB shares at a starting price of VND13,000 ($0.57) apiece.

The bank had last year offered to sell 18.9 million OCB shares at a starting price of $0.57 per share. However, only 13.16 million shares were purchased then with the highest price touching VND14,500 ($0.64). That sale saw Vietcombank’s holding in OCB fall from 4.72 per cent to 3.97 per cent.

The stake sale is a 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.

Following the divestment of its stake in OCB, Vietcombank also plans to sell its stake in Military Bank (MB) and Vietnam Export and Import Bank (Eximbank) this year. However, no further details have been announced.

Vietcombank 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).

Vietcombank plans to sell a 10 per cent stake to foreign investors by June this year after receiving government approval. Singaporean sovereign wealth fund GIC was said to be one of the potential buyers.

Vietcombank chairman Nghiem Xuan Thanh had earlier said that Japan’s Mizuho Bank, the bank’s largest foreign shareholder with a 15 per cent stake, is entitled to buy more shares to maintain its stake in the bank.

Also Read: 

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

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

Vietcombank to offload 7.6m shares of Vietnam Airlines, hopes to net $21.2m

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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.