4:42:10 PM | 3/9/2008
Hong Kong and Shanghai Banking Corp (HSBC) has announced the increase of its stake in Vietnam Technological & Commercial Bank (Techcombank) from 14.4 per cent to 20 per cent, becoming the first foreign lender to hold a 20 per cent stake in a local bank.
HSBC has accepted to pay VND1,272 billion, or US$77.1 million, for an additional 5 per cent stake in Techcombank.
Techcombank will issue new shares at price of VND60,891 a share for HSBC. The transaction will be made on September 5.
Vincent Cheng, president of HSBC Asia-Pacific, said Techcombank plays a pivotal role in HSBC’s development strategy in Vietnam.
The increasing investment will not only boost ties with Techcombank but also provide necessary sources to help develop Techcombank and contribute the development of Vietnam’s financial market, he said.
HSBC acquired a 10 per cent stake in Techcombank in December 2005 and raised the ownership to nearly 15 per cent in July 2007.
Techcombank, founded in 1993, is one of the largest joint stocks banks in Vietnam, with total assets of VND53 trillion (nearly US$3 billion) as of July 2008. It has a network of 160 branches and offices in 30 provinces and cities and 3,800 employees.
HSBC is one of biggest foreign banks in Vietnam with investment capital of US$30 million. The bank has two branches based in Hanoi and Ho Chi Minh City and a representative office in Can Tho with more than 1,000 staff. It is preparing to set up a 100 per cent foreign owned affiliate in Vietnam. (Local sources)
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