The Board of Directors of Bamboo Capital (BCG) has just approved the participation in capital contribution to local firm AAA Insurance JSC. The agreement is predicted to be completed in October, with the expected purchase price in accordance with AAA's book value.
|Bamboo Capital will acquire 71 per cent of AAA Insurance's charter capital - an insurance company founded by Do Thi Kim Lien |
AAA Insurance is specialising in non-life insurance with a charter capital of nearly $48.9 million. According to the negotiations, Bamboo Capital Group will receive transfers from existing shareholders with a volume of more than 79.7 million shares, equivalent to 71 per cent of the charter capital of AAA Insurance.
However, the deal is still waiting for approval from the Ministry of Finance.
Bamboo Capital is a multi-industry enterprise focusing on manufacturing and agriculture, construction and commerce, infrastructure and real estate, and renewable energy. In August, the board revealed that they would increase their foothold in the banking and insurance industry to support capital mobilisation and project financing.
The company has also just established BCG Financial with a charter capital of VND400 billion ($17.4 million) of which Bamboo Capital contributes 80 per cent, equivalent to VND320 billion ($14 million). BCG Financial will be focusing on financial services such as debt trading, related consulting, and brokerage.
Meanwhile, AAA Insurance was established in 2005 in Vietnam and marked the rise of renowned businesswoman Do Thi Kim Lien, also known as Shark Lien of Shark Tank Vietnam.
In 2013, AAA became a member of Insurance Australia Group (IAG) – a multinational insurance company headquartered in Sydney.
Currently, the shareholder structure of AAA Insurance includes IAG International PTY Ltd with 80.47 per cent of the capital, while Eximbank holds 5.28 per cent.
However, AAA Insurance's business performance is not positive. In 2020, net revenues from insurance business decreased by 21 per cent. The total accumulated loss, accordingly, has reached $36.3 million.
By Nhat Minh