MSB targets to sell 100 per cent stake in consumer finance firm FCCOM

August 12, 2021 | 12:53

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Maritime Commercial Joint Stock Bank (MSB) is looking to sell 100 per cent of its stake in its consumer finance subsidiary FCCOM.

MSB targets to sell 100 per cent stake in consumer finance firm FCCOM

MSB wants to divest 50 per cent in FCCOM, and possibly looks for foreign strategic investors

The decision was announced by Nguyen Hoang Linh, general director of MSB at the bank's latest analyst meeting last week.

MSB's initial plan was to find a foreign investor to receive 50 per cent of the bank's ownership in FCCOM. However, the bank now plans to divest 100 per cent of its stake in the consumer finance company.

“Currently, there are a few potential partners working with MSB on the FCCOM divestment, and the deal is expected to be completed in 2022,” he said. “Moreover, we are mulling over a few options regarding foreign partnership, such as reserving a part of the bank’s capital for foreign investors. In the short run, international strategic partners will transfer international know-how and help MSB to diversify funding sources."

Linh is confident about MSB’s prospects, given the bank’s stable annual growth rate and profitability.

On the other hand, MSB will increase its capital by more than VND3.5 trillion($152.2 million) through issuing shares to pay dividends to shareholders at the rate of 30 per cent, thereby increasing its charter capital to VND15.275 trillion ($664.13 million). Currently, the Hanoi-based lender is waiting for the State Bank of Vietnam to approve its necessary procedures to pay dividends in the third quarter of this year.

In March, VIR reported on South Korean credit card company Hyundai Card’s failure to acquire a 50 per cent stake in FCCOM.

In 2019, Hyundai Card, the credit card company of South Korean automaker Hyundai Motor, announced it would purchase 50 per cent in FCCOM. However, the nearly $42 million deal has been called off despite lengthy discussion.

By Tri Lam

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