SHB considers selling 20% of shares to foreign partners

Saigon-Hanoi Commercial Joint Stock Bank (SHB) is negotiating with foreign investors to sell a 20% stake, Reuters reported on July 6.

According to Reuters, financial investors and companies from South Korea and Japan have approached SHB for negotiations. If the deal is successful, the bank's valuation will be raised from $1.7 billion to $2-2.2 billion.

SHB wants to tie up with a long-term foreign investor, while also tapping growing interest from South Korean and Japanese investors in Vietnam's banking sector, Reuters sources said.

“SHB is actively exploring opportunities with other partners, not only in Asia, with the goal of bringing the highest benefits to the bank and our shareholders,” according to SHB.

Discussions are ongoing with the assistance of a financial adviser, and no decision has been made. However, a deal is expected to be completed this year or early 2024, after receiving approval from the State Bank of Vietnam, according to Reuters.

According to Refinitiv data, Vietnamese transportation and real estate group T&T Group of businessman Do Quang Hien (Bau Hien) is the largest shareholder of SHB with 10% of shares.

By the end of the first quarter of 2023, SHB's total assets reached more than VND 570 billion, an increase of 10.6% over the same period in 2022. SHB's charter capital reached VND 30,674 billion, maintaining its position in the Top 5 private joint stock commercial banks with the largest charter capital in the entire system.

Vietnamese banks are boosting their capital bases to build stronger buffers against increasing competition.

In March, Vietnam Prosperity Joint Stock Commercial Bank (VP Bank) completed the sale of a 15% stake for $1.5 billion to Japan's Sumitomo Mitsui Financial Group.

Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) is also planning to raise at least $600 million in new equity capital, according to Reuters .

Nguyen Tuyet (According to Reuters, SHB)

Source