Military Bank to issue shares to increase equity
Military Bank to issue shares to increase equity
Military Bank plans to increase its charter capital from VND11.25 trillion, or US$535.71 million, to VND15.5 trillion, or $738.10 million, this year.
The bank's management board announced the scheme at a shareholder meeting on Wednesday, adding that the plan would be carried out in two phases.
About VND337.6 billion, or $16.08 million, is expected to be added to the bank's equity in the second quarter through the issuance of about 33.76 million shares. These shares will be used to pay last year's dividends to the existing shareholders.
Over VND3.9 trillion, or $185.71 million, will be raised during the second half of this year through an offering of about 390.6 million shares to strategic shareholders or partners.
The share prices are negotiable and are expected to be discounted up to 25 per cent of the market price, but not lower than the shares' face value (VND10,000 or $0.48 each).
Bank General Director Le Cong said the discount was a preferential policy to attract strategic investors and encourage their long-term investments, in line with the bank's development direction over the last few years.
For three years, the bank had sought strategic foreign partners to foster its management capacity, technology development and network expansion. But it has not been able to find suitable partners yet.
A representative of the Japan Securities Inc in Ha Noi told the Wednesday meeting that four Japanese banks intended to become strategic partners of Military Bank, and that the bank's management board was willing to study business opportunities with them.
This year, Military Bank plans to achieve VND200 trillion, or $9.52 billion, in total assets, up 11 per cent over last year. The targeted pre-tax profit is VND3.1 trillion, or $147.62 million, a year-on-year increase of 3 per cent. The dividend rate for 2014 is expected to be 10 per cent.
The bank aims to become a multi-function financial group in the future. It will combine banking operations with investment and finance services in other areas, including insurance, securities and asset and fund management.
The bank's shares on Thursday closed down 0.2 point at VND14,000, or $0.67, per share on the HCM City Stock Exchange.
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