Vietcombank reduces holdings at other banks
Vietcombank reduces holdings at other banks
Vietcombank (VCB) has recently announced it sold a large number of Military Bank (MBB) and Eximbank (EIB) shares on the stock markets to reduce its ownership ratios at the banks to 5 per cent in each as regulated by the central bank.
Accordingly, VCB sold 23.7 million MBB shares from November 16 to 30, reducing its holding at MBB from 6.97 per cent to 5.87 per cent. MBB shares were traded at VND20,000-21,000 each on the HCM Stock Exchange (HoSE) during that time.
More than 35 million EIB shares were also sold by VCB on December 4, when EIB shares were traded at nearly VND15,100 apiece on HoSE. The sale moved VCB’s holding at EIB to 5.39 per cent from 8.24 per cent.
The average prices of the sales were higher than the starting prices of VND19,641for MBB shares and nearly VND14,500 for EIB shares.
VCB will have to continue selling MBB and EIB shares until its holdings at the banks reduce to 5 per cent to meet the central bank’s regulation on holding shares at other credit institutions. Under the central bank’s Circular 36, commercial banks are allowed to hold shares in a maximum of two other credit institutions, with the stake in each not exceeding 5 per cent of the total charter capital of that institution.
Earlier, analysts from the Saigon Securities Inc (SSI) estimated that at the initial price of VND19,641 and VND14,497 per MBB and EIB share, respectively, Vietcombank will gain revenue of nearly VND1.05 trillion and VND657.7 billion from the divestments.
