Saigon Securities Inc. (SSI) has announced that ANZ plans to sell the bank’s entire stake in the local brokerage after seven years as strategic shareholder.
ANZ will divest more than 61 million shares, or 17.51 per cent through a negotiated sale, according to a statement just released by SSI.
ANZ has made significant contributions to the development of SSI, particularly in terms of expanding its client network, and the brokerage house said its relationship with the bank remains ‘good’. The exit is merely a new move in ANZ’s business strategy to focus more on the commercial banking sector.
SSI chairman and CEO Nguyen Duy Hung and his younger brother Nguyen Hong Nam, member of the board of directors and deputy general director, as well as a group of other domestic investors will reportedly buy the shares to be sold by ANZ.
The divestment will open up room for other foreign investors to step in, as the foreign ownership cap has kept any further investment into SSI closed off. A government decision to raise the foreign ownership cap is still pending.
Hung claimed that, “ANZ’s exit will not affect our business. Many foreign investors want to join us as foreign strategic investors, but have been unable because of the ownership cap.”
SSI is the biggest securities firm in Vietnam in terms of registered capital with VND3.538 trillion ($167 million) as of the end of June and the second largest in terms of aggregate market share with 10.7 per cent by the end of the first half of this year.