Monday, 24 Jun 2019

Vietcombank to sell stake worth US$270 million to GIC, Mizuho Bank

Updated at Monday, 07 Jan 2019, 15:55
The Hanoitimes - Under the plan, Singapore’s sovereign wealth fund GIC is expected to hold 2.55% stake and Mizuho Bank for the remaining, so that the latter could maintain its stakeholding of 15% at the Vietnamese lender.
Hanoi-based Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) is scheduled to offer a 3% stake worth US$270 million to foreign investors, following the approval of the country’s stock market watchdog State Securities Commission of Vietnam (SSC), VnExpress reported.
Illustrative photo.
Illustrative photo.
On December 28, 2018, the State Bank of Vietnam (SBV) tuned a green light for Vietcombank, the country’s largest bank by market value, to increase its charter capital by issuing shares to Singaporean sovereign wealth fund GIC and Japan’s Mizuho Bank, the largest foreign shareholder of Vietcombank.

Under the plan, GIC is expected to hold a 2.55% stake and Mizuho Bank the remaining so that the Japanese bank can maintain its stakeholding of 15% at the Vietnamese lender. 

Last October, Vietcombank submitted a proposal to State Securities Commission for the offering of a maximum of 10% stake or 360 million shares to foreign investors. 

With the sale, Vietcombank expects to increase its charter capital by 3.6 trillion (US$153.4 million) to VND39.5 trillion (US$1.7 billion). 

Of the sum, the Hanoi-based lender would offer 53.9 million shares to Mizuho Bank, which is entitled to buy more shares, and another 305.8 million shares or 7.73% stake to other foreign investors through private placements. 

According to the bank's resolution of the annual general shareholders' meeting in April 2017, the offering price would not be lower than the price determined by an organization providing corporate valuation services and market prices determined through principles approved by relevant authorities. 

Additionally, the lender would favor foreign investors with strong financial records, possibly including one or several existing shareholders of Vietcombank. The bank is also considering allocating board seats to foreign investors after the stake sale. 

After completing the sale, those shares in subject will not be transferable in one year. 
Nguyen Tung
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