Hanoi-based Lien Viet Post Joint Stock Commercial Bank, known as LienVietPostBank, is in talks to sell a 25% stake to an overseas strategic investor as the bank seeks expertise to expand its foothold, the bank’s General Director Nguyen Doan Son has said at a meeting with investors.
The executive, however, did not unveil the name of the foreign partner or the price of the shares to be sold.
In Vietnam, details of such negotiations in the banking system remain confidential until the deal is sealed.
LienVietPostBank expects the foreign partner to support it in building the strategy of governance and organization, as well as provide financing, Son added.
The foreign ownership in Vietnamese banks is currently capped at 30%, while a single foreign strategic investor can own at most a 20% stake in a bank. The Vietnamese government has several times said it would loosen the cap to make investment in a local bank more attractive.
“A number of foreign investors have shown interest [in acquiring shares of the bank], and we are holding talks with several renowned institutions. We cannot reveal the price now and it will take years, not days, to complete the sale,” Son said.
The executive refuted rumors saying that LienVietPostBank would merge with Ho Chi Minh City-headquartered Sacombank after Duong Cong Minh stepped down as chairman of LienVietPostBank and was elected to chair Sacombank.
He also noted that the bank would not acquire a consumer finance company as some banks do, as it will make use of the 200 branches and transactions office, and the right to exploit 10,000 postal outlets of the Vietnam National Posts and Telecommunications Group (VNPT) nationwide.
LienVietPostBank started trading 646 million shares on Hanoi Stock Exchange"s Unlisted Public Company Market (UPCoM) on Thursday at 14,800 dong ($0.65) per share. Its stock settled down 4.1% at 14,200 dong, putting the bank"s value at 9.17 trillion dong ($404 million).
The bank had nearly 150 trillion dong ($6.6 billion) worth of assets at the end of August, and earned a pre-tax profit of 1.29 trillion dong ($56.78 million) in the eight months through August.
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Cùng dòng sự kiện
Từ khóa: LienVietPostBank, Sacombank, Duong Cong Minh, UPCOM