MobiFone wants to sell all shares in Tien Phong Bank (code: TPB) at the offering price of VND29,510 on the Ho Chi Minh City Stock Exchange (HSX) to earn roughly VND163.8 billion ($7.2 million).
|MobiFone to divest from TPBank to gain $7.2 million |
Vietnam Mobile Telecom Services One Member Limited Liability Company (MobiFone) has just announced plans to sell all of its shares in Tien Phong Commercial Joint Stock Bank (TPBank). MobiFone is the representative of the state holding in TPBank, holding 5,549,914 shares, equivalent to 0.95 per cent of the stakes.
At the price of VND29,510, the TPB stocks that MobiFone holds roughly VND163.8 billion ($7.2 million), while its 2017 financial statement identified the investment in the corporation to value only VND48.6 billion ($2.14 million).
MobiFone divests from TPBank to restructure its capital and focus on production and its major business sectors, reducing most of its investment in other companies and organisations.
This year, TPBank sets the growth target of outstanding loans and bonds at 20 per cent, for total deposits at 10.55 per cent, the ratio of bad debts at under 2 per cent, and pre-tax profit at VND2.2 trillion ($97 million), up 82.42 per cent. At the end of the transaction session on June 29, the price of TPB stock was at VND27,500.
TPBank was established in 2008 with the participation of strategic shareholders such as DOJI Gold and Gems Group, FPT Group, International Finance Corporation (IFC), Vietnam National Reinsurance Co-operation (VINARE), and Singaporean financial corporation of SBI Ven Holding Pte., Ltd.
Earlier, there were two deals where Mobifone withdrew capital from TPBank and SeABank. In last February and in April 2016, MobiFone failed to sell shares in SeABank as bidders showed no interest. The second and third quarters in the year are considered the divestment and equitisation season.