PVF to delist next week after merger
PVF to delist next week after merger
Shares of PetroVietnam Finance (PVF) will be delisted from the HCM City Stock Exchange on September 24 as part of its merger with Western Bank.
A meeting late last week officially announced the establishment of a new bank after the merger - PVcomBank.
However, worries over the future of the bank after consolidation have impacted the stock. PVF saw heavy sell-off this week, hitting the floor price for three consecutive sessions.
An official of PVF, under conditions of anonymity, told the stock market information website cafef.vn that PVcomBank would meet the trading requirements of shareholders as expected and ensure maximum shareholder benefits.
"As each party in the merger has particular strengths, PVcomBank as a large-scale credit institution [with approximately VND100 trillion (US$4.7 billion) in total assets and VND9 trillion ($424.5 million) in charter capital] will operate effectively," he said.
He also revealed that his bank would manage to list shares again. "The share value of the bank will quickly restore sustainable growth," he said.
"PVcomBank has full conditions for listing," he affirmed. "The managing board will decide when to go public on the basis of balancing the long-term development of the bank and benefits of shareholders."
As the delisting is just a legal procedure, all the rights and interests of investors are secured by law. The payment of dividends and information disclosure will operate normally.
After delisting, PVF shares will be traded on the over the counter (OTC) market. The HCM City Stock Exchange will have to choose another blue chip to fill in the list of the 30 largest shares tracked by the VN30.
But it also means that PVF will be rejected from two exchange-traded funds. According to data on September 6, PVF shares accounted for 1.24 per cent of the total portfolio value of FTSE Vietnam.
Additionally, in Market Vectors Vietnam ETF, updated as of September 12, shares of PVF held by the fund reached almost 14 million worth $3.35 million. — VNS
In addition, securities firms will cut margin trading on PVF, creating large sell-offs. The losing streak of PVF shares will probably continue until the delisting.
PVF closed yesterday's session at just VND4,900 ($0.2).
vietnamnews
