After two failures, MobiFone has successfully sold all of its shares in Tien Phong Commercial Joint Stock Bank (TPBank – TPB on HSX), collecting more than VND153 billion ($6.65 million).
|Third time's the charm: Mobifone has managed to fully divest TPBank |
Accordingly, MobiFone sold 7.11 million TPBank shares at the price of VND21,350 ($0.93) per share between April 11 and May 10.
MobiFone divested from TPBank to restructure its capital and focus on productionand its major business sectors, reducing most of its investment in other companies and organisations.
MobiFone had offered its TPBank holdings for sale twice but failed. At the second time, according to MobiFone, the main reason was that on December 17, 2018, the adjusted market price of TPB was lower than the starting price offered when TPBank pays dividend shares.
According to the financial report of TPBank, by the end of the first quarter of 2019, the bank’s total operating income reached VND1.89 trillion ($82.1 million), an increase of nearly VND700 billion ($30.4 million) compared to the first quarter of 2018. In particular, pre-tax profit reached VND853 billion, up 66 per cent ($37.1 million) over the same period.
As of the end of this March, TPBank’s total assets reached nearly VND140 trillion ($6.1 billion), nearly 3 per cent higher than the end of 2018. Owner’s equity reached VND11.3 trillion ($491.3 million). In addition, the capital adequacy ratio (CAR) was consistently over 10 per cent, meeting Basel II standards.
On the stock market, after the divestment of MobiFone, the TPB stock has increased continuously for five sessions. On May 20, the stock closed at VND23,850 ($1.03) per share, bringing the market capitalisation to about VND20.2 trillion ($878.3 million).