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IFC to sell 16 million Sacombank shares
The International Financial Corporation (IFC) announced on December 15 that it would sell off over 16 million shares in Sacombank-over half its holdings in the HCM City-based commercial bank.
Based on the share prices on the HCM City Stock Exchange on December 15 of VND19,900 (up 4.74 percent against December 12), the total value of the deal could exceed VND320 billion.
The move comes after IFC’s support of Sacombank’s transition into becoming one of Vietnam’s leading joint-stock banks, IFC said in a press release.
“The sell-off by IFC is in accordance with the capital withdrawal plan previously projected by Sacombank and IFC. Sacombank and IFC are working together to transfer the shares to a third partner,” Sacombank general director Tran Xuan Huy said.
An exact time for the sale was not specified, but once completed, IFC would continue to hold a stake of about 3.4 percent in Sacombank.
“The public is going to hear this news, feel nervous about it, and then sell out Sacombank shares (STB),” said Saigon Securities Incs senior analyst Ngo Duc Hung Linh. “Since STB is a big performer on the domestic stock market, a sudden decline of STB may drag down the entire market.”
Some said IFC’s move was a visible example of foreign capital being withdrawn by investors.
“Investors always worry about any capital withdrawal by foreign partners,” said Nguyen Dinh Phong, director of the investment service department of VNDirect Securities. “With IFC’s decision, investors will feel insecure holding on to Sacombank shares.”
But Nguyen Van Chien, former analyst with Artex Securities, discounted the worries, arguing, “I do think that local investors know that much about the capital being withdrawn by foreign investors. Since October, foreign investors have sold out an average of two million shares everyday, but they are holding onto about 1.4 billion shares on the two exchanges.”
Chien noted the strong market performance on December 12 and said he didn’t expect this news about Sacombank to interfere with the market.
He predicted that the Index would still likely increase on December 16.
Even before hearing Sacombank’s reassurance that it would transfer the shares to another institutional investors, SSI analyst Linh said, “Selling shares to another investor will not be difficult for Sacombank because of its good performance and reputation."
Current foreign strategic partner ANZ Bank, which holds a 10-percent stake in Sacombank, would not comment on whether ANZ would seek to acquire a larger stake.
VOV, VNS
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