South Korea's Samsung Fire & Marine Insurance to buy 20 pct stake in Vietnam's Pjico

By VnExpress   May 8, 2017 | 03:23 pm GMT+7

Parent company Petrolimex has also brokered a strategic partnership between the two firms.

Samsung Fire & Marine Insurance Company will acquire a 20 percent stake in Vietnam's Pjico, which is expected to help boost the Vietnamese insurance firm's finances and bidding competitiveness, its parent firm Petrolimex said on Monday.

Samsung Fire & Marine Insurance (SFMI) and Hanoi-based Pjico signed an agreement last Friday for the share purchase, Petrolimex said in a statement, adding that it and the two firms had also agreed another pact to form a strategic partnership.

Pjico, fully known as PG Insurance Company, will issue 17.74 million shares to the Korea-based non-life insurer, cutting Petrolimex's ownership in Pjico to 40.95 percent from its current 51 percent, while Vietcombank's stake will be reduced from 10 percent to 8.03 percent, the statement said.

The sale will also cut the ownership of other Pjico investors to 23.19 percent from 37.77 percent.

The statement did not say when the transaction would be completed or give the value of the purchase.

Pjico said its first-quarter gross profit rose 31 percent from a year ago to VND40 billion ($1.8 million).

Its shares were up 1.3 percent at VND23,900 ($1.05) after the morning session on Monday.

SFMI provides its services in the domestic market and several other countries, including Indonesia, Brazil and China.