VPBank (VPB) fixes 15 pct foreign ownership cap for listed stocks
VPBank (VPB) fixes 15 pct foreign ownership cap for listed stocks
Lender VPBank has set a 15 percent foreign ownership cap for its listed stocks to leave room for direct equity sales to a strategic investor.
VPBank's office tower in Dong Da District, Hanoi. Photo courtesy of VPBank.
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The government has capped foreign ownership of commercial banks at 30 percent of their charter capital.
VPBank management said at the recent annual meeting of its shareholders that the bank was seeking a foreign strategic partner, so placing a cap on listed stocks will allow it to sell the remaining 15 percent to foreign investors of its choice.
VPBank is among the few lenders in Vietnam that has not had a foreign strategic partner yet.
Chairman Ngo Chi Dung said that they will start searching for a strategic partner at the end of this year. He said the bank will issue shares and sell treasury shares to the chosen partner.
VPBank sold a 49 percent stake in its subsidiary, consumer credit firm FE Credit, to Japan’s Sumitomo Mitsui Financial Group for $1.4 billion in late April. Industry insiders expect further cooperation between the private lender and the Japanese financial group.
