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DongA Bank sells shares
The joint stock DongA Bank will sell shares to a handful of foreign institutions expected to support the bank’s retail and wholesale operation this year, according to an official.
General Director Tran Phuong Binh told Viet Nam News daily that negotiations were under way with two American organizations; a fund management firm and an investment bank.
The sales will be part of DongA Bank’s plan to increase its legal capital to 3.4 trillion VND (213 million USD) this year, up from the current 1.6 trillion. The plan was approved by the annual shareholder meeting last Saturday.
If negotiations are successful, each group will acquire 5 percent of the new legal capital as the bank’s first foreign investors.
The bank plans to sell an additional 5 percent to another foreign bank, bringing total foreign ownership of the bank to 15 percent. Binh said that would leave room for other foreign investors once the bank is listed on the Ho Chi Minh City Stock Exchange, expected for the first quarter of 2009.
Under existing regulations, foreign investors may own a maximum of 30 percent of a listed bank, while the limit for a non-banking listed company is 49 percent.
This year the bank wants to achieve a gross profit to widen its network to 200 branches and transaction offices by the year’s end.
VNA
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