The State Securities Commission (SSC) has fined HDI Global SE – a German investor which is the largest shareholder of Vietnamese non-life insurer PVI – for non-compliance with information disclosure and violating foreign ownership limit rules.
|HDI Global SE was fined for violating the FOL at PVI and allegedly attempting to obscure the fact |
PVI’s biggest shareholder, HDI Global SE, has been one of the leading multinational insurers offering a broad and needs-based range of insurance solutions and accompanying services for decades.
HDI Global SE is also part of Talanx Group, the third-largest German insurance group in terms of premium income and one of the largest in Europe.
In mid-August, HDI Global SE was allegedly fined for VND125 million ($5,430) for conducting one or several transactions to obscure company ownership and avoid information disclosure responsibilities. A fine of VND60 million ($2,600) was also imposed on the corporation for violating the foreign ownership limit (FOL).
The SSC also issued remedial measures for the German insurer to make up for its wrongdoings.
Accordingly, HDI Global SE might be compelled to transfer shares within or no later than 60 days to reduce its ownership to be in accordance with the SSC’s regulations, as prescribed in Article 28.3b of Decree No.108/2013/ND-CP providing for the sanctioning of administrative violations in the domains of securities and securities market.
At the moment, HDI Global SE holds a total of 44.7 per cent in PVI, followed by Vietnam’s leading oil and energy producer PetroVietnam (36 per cent).
From 2017 to 2019, HDI Global SE registered to buy convertible bonds issued by Sunway. Notably, these convertible bonds were allegedly linked to PVI's shares which Sunway purchased.
HDI has also conducted a number of transactions aimed at concealing its true ownership of PVI shares held by Sunway. Allegedly, this was done to avoid the obligation to disclose public information stipulated by Article 70.3c of Decree No.58/2012/ND-CP.
In June, PVI was approved by the Ministry of Finance to increase its charter capital to VND3.1 trillion ($134.8 million). Accordingly, the firm is now the largest non-life insurer in Vietnam.
Earlier this year, the Ministry of Finance approved Duong Thanh Francois, who is of French nationality, as chairman of the Members’ Council of PVI Insurance in Official Letter No.2145/BTC-QLBH on February 28, 2020.
Duong Thanh Francois is currently also director of the Asia-Pacific region (except Japan) of HDI Global SE.
VIR is reaching out for further details and will update the article.