Vietnam Mobile Telecom Services Company (Mobifone) has announced a plan to put its entire shareholding of 5.5 million shares in Tien Phong Bank (TPBank) for sale, local media reported.
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Should the reference price be lower than VND25,230 (S$1.08), then the starting price would be set at VND25,230 (US$1.08).
Mobifone is expected to book proceeds of at least VND138.76 billion (US$5.94 million) once completing the deal.
The sale is scheduled to be held from November 2018 to April 2019 via put-through or order-matching transactions on the Hanoi Stock Exchange (HNX).
At the close on December 10, TPBank’s share value stood at VND21,500 (US$0.92) per share, much lower than the starting price.
According to the telco, the divestment is aimed at providing additional working capital for Mobifone’s core businesses, while gradually shifting focus away from financial investment activities.
In June, Mobifone planned the sale of its shareholding in TPBank through similar method but at a higher starting price of VND29,510 (US$1.26) per share. However, the deal failed to materialize because the starting price was much higher than the market one.
In January, Mobifone planned to proceed with a similar move at share price of VND12,800 (US$0.55). A few days later, TPBank sent a letter to HNX stated that foreign ownership at TPBank had reached the cap of 30% of the charter capital, indicating that no foreign investors will be allowed to participate in the auction.
Consequently, Mobifone requested to call off the auction, aiming to clarify existing foreign ownership in the Vietnamese lender and ensure the legal rights of investors participating in the auction.
