SMBC Bank (Japan) is allowed to buy 1.19 billion newly issued shares of VPBank

SGGPO August 16, 2023 7:09 PM

After purchasing these 1.19 billion shares, SMBC's stake in VPBank represents 15%. The shares purchased by SMBC are subject to a 5-year transfer restriction. VPBank expects to raise VND 35,904 billion, increasing its total equity to nearly VND 140,000 billion.

SMBC Bank (Japan) purchased 1.19 billion newly issued shares of VPBank.

The State Bank of Vietnam (SBV) has just sent a letter to SMBC Bank (Japan), approving SMBC's request to purchase newly issued shares of VPBank as per the application submitted by SMBC.

The State Bank of Vietnam also required SMBC Bank to fully fulfill the obligations and responsibilities of a foreign investor as stipulated in the Law on Credit Institutions of 2010 (amended and supplemented) and related Circulars and Decrees. Accordingly, SMBC Bank is allowed to purchase 1.19 billion shares offered by VPBank in a private placement at a price of VND 30,159 per share.

Previously, VPBank estimated that the private placement to SMBC Bank would take place in the third and fourth quarters of 2023 after approval from the State Bank of Vietnam and notification from the State Securities Commission that it had received all the necessary documents for the private placement.

After purchasing these 1.19 billion shares, SMBC's stake in VPBank will reach 15%. The shares purchased by SMBC are subject to a 5-year transfer restriction. VPBank expects to raise VND 35,904 billion, increasing its total equity to nearly VND 140,000 billion.

With the proceeds from the private placement of SMBC Bank shares, VPBank will use nearly VND 35,000 billion to supplement medium and long-term capital for customer loans, while the remaining VND 905 billion will be invested in infrastructure, facilities, and the development of information technology systems in Q4 2023 and throughout 2024.

Following this announcement, VPB shares closed the trading session on August 16th up 1.82% to 22,500 VND per share.

Source: https://www.sggp.org.vn/ngan-hang-smbc-nhat-ban-duoc-mua-119-ty-co-phieu-phat-hanh-moi-cua-vpbank-post701843.html