BIDV to sell shares to strategic partner

December 06, 2011 | 14:28

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BIDV will sell a 15 per cent stake to a strategic foreign investor nine months after launching its maiden IPO.

According to Tran Bac Ha, chairman of BIDV, after the IPO on December 28, the banking will sell a 15 per cent stake to strategic partner worth VND4,237 billion ($203.37 million).

The corporate value of the bank is calculated by international consultant Morgan Stanley using the discounted cash flow (DFC), relative valuation and precedent transaction multiples methods. Vietnam Valuation and Finance Consultancy JSC (VVFC) will join valuation process using net asset value (NAV) method.

The central bank will be responsible for deciding BIDV's share price at auction and the price will be announced no later than December 7. The move follows the earlier equitisation of Vietcombank (VCB) and Vietinbank (CTG) – which are now listed on the Ho Chi Minh Stock Exchange.

Investors can register and deposit for the auction from December 8-21 though 12 securities companies BSC, CTS, VCBS, VNDS, SHS, SSI, ACBS, VCSC, PSI, BVSC, KLS and NSI. The deadline for submitting registration forms is no later than 3pm on December 26.

Until December 31, 2010, BIDV’s corporate book value was VND363,094 billion ($17.43 billion), the real value audited by State Audit is VND381,317 billion ($18.3 billion). The bank’s state holding book value is VND22,036 billion ($1.06 billion) and the redefined value is VND40,259 billion ($1.93 billion).
BIDV’s chartered capital as a base for valuation is VND28,251 billion ($1.35 billion).

Currently, the bad debt to total outstanding loans of BIDV is 2.59 per cent. Total return to equity (ROE) is expected to reach 11-12 per cent for the whole financial year 2011.

By Trinh Trang

vir.com.vn

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