Malaysia’s May Bank to up stake in An Binh Bank

An Binh Bank has announced that it will sell 17.8 million shares to its foreign strategic partner, Malaysia’s May Bank, at the price of VND20,000 per share.

The acquisition by May Bank would increase its ownership in the local bank to 20 per cent, pursuant to official approval for the enlarged stake given earlier this year.

May Bank now currently holds 15 per cent of equity in An Binh Bank, the maximum by law that a foreign investor is allowed to hold in a domestic bank. A single foreign investor may hold up to 20 per cent with Government approval.

The proposed sale of shares is part of an overall plan in which An Binh Bank is likely to issue another 45.4 million shares, equivalent to VND454.2 billion (US$24.6 million) from the bank’s surplus capital, to existing shareholders at a 15-per-cent ratio. The issue would take place during December 20-30.

Following the sale of shares, the bank would increase its charter capital from VND2.85 trillion ($154 million) to VND3.48 trillion ($188.1 million), said An Binh Bank general director Nguyen Hung Manh, noting that the bank expected to continue growing at an annual rate of 30-40 per cent during 2010, ensuring benefits to both customers and shareholders.

An Binh Bank posted a profit in October of VND46 billion ($2.5 million), helping lift ten-month profits to VND327 billion. As of October 31, this bank had total assets of VND20 trillion ($1.1 billion).

Tags: An Binh Bank, Malaysia’s May Bank, vietnam bank