Kienlong Bank to sell 176 million shares of Sacombank (STB)
The Kienlong Commercial Joint-Stock Bank (Kienlong Bank) will put up more than 176.4 million shares of Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank) for sale at a starting price of VND21,600 per share (US$0.93).
Kienlong Bank will offer the shares, which are collateral assets of some individuals, to retrieve debts. This is the second attempt by Kienlong Bank to offload Sacombank’s shares since its failure at the end of January.
If the sale is successful, Kienlong Bank will collect more than VND3.8 trillion.
Compared to the previous offering, Kienlong Bank has discounted the share price by 10 per cent. However, the price of VND21,000 is still nearly double the current transaction price of Sacombank shares on the stock market.
In 2019, Kienlong Bank's total revenue touched VND1.2 trillion, down 4 per cent compared to the same period in 2018. The bank’s consolidated post-tax profit reached only VND68 billion, down 71 per cent year-on-year.
If the sale is completed within 2020, Kienlong Bank estimates that the bank's pre-tax profit this year could reach about VND750 billion.