While domestic investors are trying to bargain bank shares, foreign institutions are still very interested in and are seeking to raise their ownership in Vietnamese lenders, state media reported.
The share slump has created a good chance for foreign financial institutions with long-term investment vision to buy in cheap shares and expand their presence in Vietnam banking sector, the Investment newspaper said.
The stock market is offering very reasonable share prices, the Securities Investment newspaper cited Southeast Asia General Director of Standard Chartered Bank Ashok Sud as saying.
“I hope that domestic investors will return to the stock market soon,” he said.
The Standard Chartered Bank raised its ownership in Asia Commercial Joint Stock Bank (ACB) to 15 per cent from 9 per cent, by buying an additional 6 per cent stake from the International Financial Corporation (IFC).
OCBC, the third-biggest finance group in Singapore, has also reached a deal to increase its holdings in VP Bank from 10 per cent to 15 per cent.
Hong Kong and Shanghai Banking Corporation (HSBC), which recently boosted its stake in Techcombank to 15 per cent from 10 per cent, has reached a preliminary agreement to continue raising the ownership to 20 per cent, media said earlier this week, not revealing the price.
Meanwhile, the Malaysian partner of An Binh Bank, Maybank, has announced a plan to raise its ownership in the lender to 20 per cent. BNP Paribas and UOB are also seeking a 15 per cent stake in OCB, and Southern Bank, respectively.
The high price foreign strategic partners paid for stakes in Vietnamese banks show their confidence in the potential of the local partners, despite the big difficulties Vietnam's economy is facing.
The prices of “king shares” (a term used for bank shares) have dramatically decreased on the official stock market since early May, many prices now below face value on OTC market.
Two only listed banks, ACB and Sacombank, and unlisted lenders, meanwhile, have still announced good business results in first months of 2008.
However, Ashok Sud proposed that Vietnam should encourage the merge and acquisition (M&A) activities among banks in case the economy and banking sector face challenge. (Securities Investment, Investment)
Vietnamese
