ANZ sells entire stake in securities firm SSI

ANZ is divesting its stake in Saigon Securities Inc.

“While Saigon Securities Inc (SSI) remains a leading securities company in Vietnam and the partnership has benefited both parties, the sale is consistent with the group’s super regional strategy which emphasises the growth of ANZ-owned businesses and its commitment to improving returns in Asia,” Tareq Muhmood, CEO of ANZ Vietnam, told VIR.

ANZ has been a shareholder in SSI for seven years. It entered SSI in 2007, buying a 10 per cent stake at $88 million. ANZ on September 29 stated that it had agreed to sell its 17.5 per cent stake.

SSI was priced at VND29,200 per share on September 26 which means the stake was worth around $85 million by market price.

According to SSI’s press release issued on September 29 announcing the divestment, ANZ’s move was in line with the banking group’s strategy to focus 100 per cent of its capital into commercial banking in Vietnam.

“This is a chance for foreign investors,” Nguyen Duy Hung, chairman-cum-CEO of SSI, said. “SSI’s foreign share threshold had been reached since 2011. SSI and many foreign investors have asked the government for expansion many times since to no avail. ANZ’s divestment has opened up some room.”

The divestment would not affect SSI’s development strategy, Hung claimed. “SSI remains attractive to many other foreign investors,” he said.

A group of domestic investors have registered to buy the shares from ANZ, including Hung himself, Duong Mat Troi Investment JSC., whose CEO is Hung’s younger brother, and Saigon Dan Linh Real Estate Co., Ltd, which is owned by the brother’s family.

The price of SSI shares has been on a steady uptrend, ending at VND31,700 a share on October 3 up from VND30,700 a share on September 29 when the news was released. SSI was the biggest brokerage on the Ho Chi Minh Stock Exchange based on market share of 13.27 per cent during the first three quarters of the year. It earned audited consolidated net profits of VND456.16 billion ($21.6 million) on revenue of VND868.64 billion ($41.16 million) in the first half of 2014.

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