Vietcombank to cut stake in Eximbank

10:45 | 25/09/2018 Finance - Banking

The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) has offered to sell 45.6 million shares it is holding in the Vietnam Export-Import Joint Stock Commercial Bank (Eximbank).

The Vietcombank has offered to sell 45.6 million shares it is holding in the Eximbank - Photo: dantri.com.vn

Vietcombank plans to sell the shares at nearly 14,500 VND (US$0.64) per share and expects it would receive at least 661 billion VND (US$29.4 million) from the deal.

Vietcombank holds more than 101 million shares of Eximbank, equal to an 8.24 percent stake. If the deal is successfully carried out, Vietcombank will cut its ownership in Eximbank to below 5 percent.

The deal aims to help Vietcombank comply with Circular 36, released in November 2014 by the State Bank of Vietnam and regulating a below-5-percent-stake held by a financial institution in another.

Vietcombank and Eximbank shares are listed on the HCM Stock Exchange with ticker VCB and EIB, respectively.

Vietcombank shares gained 1.7 percent to close September 21 at 64,400 VND per share while Eximbank shares dropped 1.1 percent to 14,050 VND per share.

The auction will be held at the Hanoi Stock Exchange on October 22.

Vietcombank has sold parts of its stakes in some financial institution such as SaigonBank and Cement Financial Company (CFC), and offloaded all its shares in Orient Commercial Bank (OCB).

Last week, Vietcombank announced it would put 53.4 million shares of Military Bank (MB) up for auction on October 12 at a starting price of 19,641 VND apiece.

If the divestment succeeds, Vietcombank will earn at least 1.5 trillion VND (US$63.29 million).

The divestment will help the bank reduce its holdings at MB from the current 6.97 percent to 4.5 percent, equal to 97.1 million shares.

Vietcombank has gained approval of the State Bank of Vietnam that allows the country's largest bank by market capitalisation to increase its charter capital to 39.57 trillion VND from the current 36 trillion VND.

The capital increase plan was approved by the bank’s shareholders at its annual shareholder meeting organized in late April.

Theo VNA