vietnamese financier sacom bank According to the company, the company plans to sell a 33% stake and aim to raise between $840 million and $880 million by the end of the year. deal street asia.
The Ho Chi Minh City-listed bank plans to offer shares at VND34,500-36,000 (US$1.36-1.40) per share, significantly higher than the current trading price of VND28,400 per share. is.
The move values the bank at about VND53.5 trillion (US$2.1 billion).
The sale faces a major hurdle as foreign ownership in Vietnamese banks is limited to 30%.
Currently, foreign investors hold more than 23% of Sacombank’s shares, including major shareholders such as Dragon Capital, which holds about 6%.
Those close to the deal said the challenge was finding domestic investors willing to absorb such a large stake, and that agreements with existing foreign shareholders were needed to facilitate a sale at a favorable price. I emphasized one thing.
The Sacombank share sale is part of a broader restructuring strategy following the bank’s 2015 merger with Southern Bank.
The merger was part of the government’s efforts to consolidate the banking sector, leaving Sacombank saddled with large amounts of bad loans from Southern Bank.
Since 2017, Vietnam Asset Management Company (VAMC) has been managing these bad loans and holds 33% of the shares as collateral.
According to the April shareholders’ meeting report, Sacombank has settled most of its debts to VAMC and provided for the remaining amount in full.
VAMC, a state agency, was created to buy bad loans from local banks to prevent the system from collapsing.
Featured image credit: Edited from freepic
