The State Securities Commission of Vietnam (SSC), the country's stock market watchdog, has confirmed the receipt of Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank)'s proposal for the offering of its 10% stake to foreign investors.
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Of the sum, the Hanoi-based lender would offer 53.9 million shares to Mizuho Bank, its largest foreign shareholder which is entitled to buy more shares to maintain its stakeholding of 15% at the bank, and another 305.8 million shares 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 a 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.
On October 15, Vietcombank concluded the sale of only 10,000 out of 53.4 million shares of the Military Bank (MB) at an auction, which was part of the lender's effort in meeting the State Bank of Vietnam (SBV)'s regulation on limiting cross holding.
Under the regulation set by the State Bank of Vietnam, the country's central bank, commercial banks are permitted to hold shares in a maximum of two other credit institutions, with the stake in each not exceeding 5%. The SBV requires banks to comply with its requirements before June 30 next year.
Vietcombank currently holds a 6.97% stake or 150.6 million shares in MB, and an 8.24% stake or 101.2 million shares in Eximbank.
