Vietnam: Korea’s KEB Hana Bank eyes BIDV’s stake

A BIDV bank card. Visual from the bank's website.

KEB Hana Bank, a subsidiary of Korea’s Hana Financial Group, plans to acquire a stake at Bank for Investment and Development of Vietnam (BIDV) as part of its business expansion, Business Korea reported.

A local financial official on March 8 told Business Korea that KEB Hana Bank was going forward with the acquisition of a stake in the BIDV, one of Vietnam’s four state-run commercial banks. The deal is nearly closed when the final step of the process was approved by Vietnam’s government, the report cited.

Under the plan, KEB Hana Bank will buy stake at BIDV when the bank raises new capital through capital increase to improve its financial structure.

BIDV earlier announced its plans to sell a 15 per cent stake to a strategic foreign partner and another 10 per cent to an overseas financial investor. In fact, the plan to sell stake to foreign investors was announced in 2015. At that time, BIDV was in talks with eight foreign investors for the overseas partnership, a similar move followed by other major banking players like Vietcombank and Vietinbank.

The Ho Chi Minh City Stock Exchange-listed bank in 2015 merged with the Mekong Housing Bank (MHB), with the entity to acquire the name and legal status of BIDV and be located at its headquarters. After the merger, BIDV reported 12 per cent rise in its registered capital from VND28.11 trillion (US$1.30 billion) to VND31.48 trillion ($1.44 billion).

The BIDV, which started as Vietnamese Construction Bank in Vietnam in 1957, is one of Vietnam’s four major government-run commercial banks. It made its initial public offering (IPO) in 2011 and listed in Ho Chi Minh City Stock Exchange in 2012. However, the IPO was hit by the economic crises with prices of BIDV shares failing to reach desired levels.

KEB Hana Bank, together with its subsidiaries, provides commercial banking, trust banking, foreign exchange, and merchant banking services to retail and corporate customers in South Korea and internationally.

Earlier this year, local media reported that Chairman of KEB Hana Bank met with Vietnamese Deputy Prime Minister Vuong Dinh Hue, emphasising the cooperation between Hana Bank and BIDV.

Vietcombank earlier also announced its plan to offload a 10 per cent stake to foreign investors in the first half of this year. Singaporean sovereign wealth fund GIC Private Limited and Japan’s Mizuho Bank are likely to become a significant shareholder in the bank.

Techcombank, meanwhile, also plans to list its shares on Ho Chi Minh City Stock Exchange (HoSE) this year and sell over 158 million treasury shares to foreign investors.

Orient Commercial Bank (OCB) signed a comprehensive cooperation agreement in 2017 with South Korea’s Daegu Bank, preparing for further cooperation in the future regarding international payments, services to small and medium-sized enterprises (SMEs) while LienVietPostBank is offering a stake of more than 10 per cent to overseas buyers.

Also Read:

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

Vietnam: Techcombank targets at least $162m from treasury share sale to foreign investors

 

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

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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.