ACB demonstrated strong performance, with consolidated profit of more than 2 trillion VND by the end of September 2017, up 60 percent year-on-year (Photo: ndh.vn) Hanoi (VNA) - Standard Chartered Bank (Hong Kong) has ended its“12-year marriage” with the Asia Commercial Bank (ACB), offloading its entireholding of more than 154 million shares in the Vietnamese bank.
The transaction was completed on January 9 for an undisclosed sum.
According to the Vietnam Depository Securities Centre’s announcement, StandardChartered APR Limited transferred 89.9 million shares, equivalent to 8.75percent of ACB’s capital, to Estes Investment Ltd and Sather Gate InvestmentLtd.
Meanwhile, Standard Chartered Ltd sold 64.2 million shares, or 6.25 percent ofACB’s capital, to three investment companies, including Boardwalk South Ltd,Whistler Investment Ltd and Estes Investment Ltd.
ACB’s shares are trading at some 40,000 VND (1.75 USD) a share on the HanoiStock Exchange, which valued the sale at about 6 trillion VND (263.2 millionUSD).
In mid-2005, Standard Chartered spent 22 million USD to acquire 8.56 percent ofACB’s capital and upstake holding to 15 percent in July 2008 for anadditional 135 million USD (excluding the money to purchase ACB’s convertiblebonds).
At that time, ACB’s shares were valued at 68,000 VND a share.
In the bank’s annual shareholders’ meeting in April 2017, Standard Charteredofficially confirmed its plan of divestment. Earlier in March 2016, it withdrewtwo representatives from ACB’s management board.
The foreign bank had explained it was under pressure to cut costs aftersuffering losses from emerging markets.
There seems to be a trend that foreign banks are withdrawing investment fromlocal banks.
In the early days of 2018, BNP Paribas offloaded its entire stake of 18.68percent in the Orient Commercial Bank (OCB), ending the 10-year alliancebetween the two banks.
Unlike OCB, ACB demonstrated strong performance, with consolidated profit ofmore than 2 trillion VND by the end of September 2017, up 60 percent year-on-year.Its share price climbed 76 percent in 2017.-VNA
The transaction was completed on January 9 for an undisclosed sum.
According to the Vietnam Depository Securities Centre’s announcement, StandardChartered APR Limited transferred 89.9 million shares, equivalent to 8.75percent of ACB’s capital, to Estes Investment Ltd and Sather Gate InvestmentLtd.
Meanwhile, Standard Chartered Ltd sold 64.2 million shares, or 6.25 percent ofACB’s capital, to three investment companies, including Boardwalk South Ltd,Whistler Investment Ltd and Estes Investment Ltd.
ACB’s shares are trading at some 40,000 VND (1.75 USD) a share on the HanoiStock Exchange, which valued the sale at about 6 trillion VND (263.2 millionUSD).
In mid-2005, Standard Chartered spent 22 million USD to acquire 8.56 percent ofACB’s capital and upstake holding to 15 percent in July 2008 for anadditional 135 million USD (excluding the money to purchase ACB’s convertiblebonds).
At that time, ACB’s shares were valued at 68,000 VND a share.
In the bank’s annual shareholders’ meeting in April 2017, Standard Charteredofficially confirmed its plan of divestment. Earlier in March 2016, it withdrewtwo representatives from ACB’s management board.
The foreign bank had explained it was under pressure to cut costs aftersuffering losses from emerging markets.
There seems to be a trend that foreign banks are withdrawing investment fromlocal banks.
In the early days of 2018, BNP Paribas offloaded its entire stake of 18.68percent in the Orient Commercial Bank (OCB), ending the 10-year alliancebetween the two banks.
Unlike OCB, ACB demonstrated strong performance, with consolidated profit ofmore than 2 trillion VND by the end of September 2017, up 60 percent year-on-year.Its share price climbed 76 percent in 2017.-VNA
VNA
