Foreigners likely to continue making big deals in 2012

Transactions of foreign investors on Vietnamese stock market in the recent past showed that foreigners may continue making big deals in 2012.
According to Vietnam Depository Centre (VSD), in January 2012, the number of foreign investors granted trading codes surged over 0.13% against the end of 2011, representing a slower rise but it cannot predict any reduction in operation of foreigners on the market. Actually, foreign investors are shifting from small deals to big transfers.

Since the year early, the stock market had 2 trading deals of foreigners. In details, ANZ Bank sold 103 million STB shares of Sacombank to Eximbank in line with negotiation method. Earlier, ANZ had had over 9.6% stake in Sacombank.

Mr Alex Thursby, General Director of ANZ-Asia Pacific, Europe and America region said that ANZ established the cooperation relation with Sacombank from 2005, which brought in a lot of benefits for both sides through last six years

ANZ is also one of three largest strategic foreign investors who had long cooperation with Sacombank. Another foreign investor Dragon Financial Holding Ltd divested capital from Sacombank in last August. At that time, Dragon Financial Holding Limited held over 60 million shares in Sacombank.

Meanwhile, Vietcombank completed the sale of its 15% stake equalling to 347,612,562 shares to Mitzuho Corporate Bank Ltd with the offering price of 34,000 dong/share. Total money amount raised from the sale was over 11 trillion dong whereby Vietcombank’s charter capital was raised from 19.7 trillion dong to 23.2 trillion dong. The event generated positive impact because VCB market price at that time was only 20,000-21,000 dong/share. Now VCB share price rose to 24,000 dong/share.

After that, the market expected that there would be such big deals in the near future.

In 2012, BIDV also plans to finish the share sale to its strategic partner, meaning that a large foreign shareholder will pump a huge capital amount into the Vietnam stock market. As planned, BIDV will sell over 423 million shares (15%) to the unnamed foreign partner.

Also a lot of local firms are seeking foreign partners to strengthen capital and experience. Especially, the financial companies such as securities company, insurance company, banks are more fond of foreign shareholders.

Mr Nguyen Hoang Hai, General Secretary of Vietnam Association for Financial Investors said that firms should see 2012 as a defence year in business strategy. They should sell majority shares or affiliates to strategic investors to increase benefits for shareholders. The move continues creating more chances for foreign shareholders to buy into local firms at this time. – Vietbiz24

Tags: vietnam stock, Vietnam stock market, VNindex

Posted by VBN on Feb 11 2012. Filed under Stock. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry