Vietcombank shareholders approve plan to sell 10 percent stake to foreign investors

By Toan Dao,    April 15, 2016 | 05:48 pm GMT+7
Vietcombank shareholders approve plan to sell 10 percent stake to foreign investors
Vietcombank's Chairman Nghiem Xuan Thanh. Photo by TPO

Shareholders in Vietcombank, Vietnam’s largest listed bank by market value, on Friday approved a plan to sell 10 percent of its stock to foreign investors.

The shares will be sold to no more than 10 foreign investors, possibly including existing foreign investors. The share sale will raise foreign ownership in Vietcombank to nearly 30 percent, Nghiem Xuan Thanh, Vietcombank’s chairman of the board of directors, said at a shareholders meeting on Friday.

Foreign investors will be allowed to hold a maximum of 30 percent in Vietcombank. Currently, the State Bank of Vietnam holds a 77.11 percent of stake, while Mizuho Bank has 15 percent and other local and foreign shareholders have 7.89 percent.

Shareholders have already approved a plan to issue bonus shares at a ratio of 35 percent. The plan, expected to be carried out this year, will help raise the bank’s charter capital by nearly VND9.3 trillion ($413 million) to VND39.6 trillion.

Additional funds from the share issuance will be used to finance the bank’s infrastructure, technology, branch expansion and investment in other projects, board member Le Thi Hoa said.

Chairman Thanh said Vietcombank has already prepared a plan for an M&A and will seek shareholders’ approval when the management finalizes a partner. Apart from a competitive price, the partner must have strong financial muscle and a management system to support Vietcombank, Thanh added.

 
 
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