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Vietnam’s third largest bank to sell its stake in SaigonBank

By Dam Tuan   May 21, 2016 | 01:25 pm GMT+7

State-owned VietinBank will sell nearly 17 million holding shares in Saigonbank, equivalent to over five percent of the bank's charter capital, to reduce ownership cap down to about five percent with only 15.12 million shares.

VietinBank (CTG), Vietnam’s third largest bank (Vnr500), will auction 16.875 million shares of its stake in SaigonBank, equivalent to 5.48 percent of the 29 year old bank. The ownership ratio of VietinBank in the Saigon based bank will decrease from 10.39 percent down to 4.91 percent.

vietnams-third-largest-bank-to-sell-its-stake-in-saigonbank

VietinBank cut down its ownership cap in SaigonBank to less than five percent in the second quarter. Photo by Vietinbank.vn

Representative of VietinBank explained the deal reflects the decision to comply with the State Bank of Vietnam’s regulations on limits and prudential ratios in operations of credit institutions and foreign bank branches.

VietinBank could receive at least VND182 billion (over $8 million) from the deal, which is expected to go ahead within the second quarter of 2016. The initial price will be offered at VND10,800 ($0.5) per share and the deal will be conducted under a public offering auction organized by VietinBank Securities JSC.

SaigonBank has the charter capital of nearly VND3.1 trillion (about $140 million) in which VietinBank’s current stake is approximately VND320 billion (over $14 million) with the par value of VND10,000 ($4.5) per share.

According to the State Bank of Vietnam’s regulations, SBV requests credit institutions (CI) and foreign branches to hold or purchase stake of other CI with one or several limits below five percent of that CI’s capital.

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