VietinBank shareholders have approved the bank’s plan to raise chartered capital by selling common shares to its Japanese strategic partner.
Under the agreement made in the shareholders’ extraordinary meeting last week, the Bank of Tokyo Mitsubishi (BTMU) will increase its stake in VietinBank to 19.73 per cent, representing the biggest ever merge and acquisition case in Vietnam’s financial and banking system sector. At an issuance price of VND24,000 ($1.15) per share, the deal will enable VietinBank to increase its chartered capital to VND32,661 billion ($1.57 billion) from VND26,217 billion ($1.26 billion), turning it into the largest bank in Vietnam in term of chartered capital.
VietinBank said it planned to use VND2,943 billion ($141 million) for loan increases. Especially, the bank will spend VND1,000 billion ($48 million) for network expansion, another VND1,000 billion ($48 million) for investment in infrastructure, technology, development of new services, and VND1,500 billion ($72 million) for investment expansion and investing in other companies.
After the issuance, the government will hold 64.46 per cent of the bank’s stake, while the International Financial Corporation and related parties claiming 8.03 per cent. In 2013, VietinBank plans to earn VND8,177.6 billion ($392 million) in pre-tax profit.