PVcomBank’s third attempt to divest top industrial insurer

December 05, 2017 | 17:52
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Vietnam Public Joint Stock Commercial Bank (PVcomBank) proceeded with the registration of selling two million shares of PVI Holdings, insurance subsidiary of Vietnam National Oil and Gas Group (PetroVietnam), running up to the third attempt to divest the insurance firm over the past four months.

The third transaction is expected to take place from December 5, 2017 to January 3, 2018. Prior to the transaction, PVcomBank was reported to hold 9.56 million PVI shares, equivalent to 4.3 per cent.

From September 8 to October 6, PVcomBank registered to sell two million PVI shares, yet only sold 552,000 due to unfavourable market conditions.

PVcomBank remains persistent in its efforts to divest PVI Holdings

Previously, between June 16 and July 14, the bank aimed at selling 12.5 million shares, yet only sold 3.64 million also due to unsupportive market conditions.

To date, the industrial insurer’ list of major shareholders comprises of HDI Global SE, the largest shareholder in possession of 83.71 million shares (37.63 per cent), PetroVietnam holding 81.98 million shares (36.85 per cent), and Funderburk Lighthouse Limited with 27.12 million shares (12.19 per cent).

Over the first three quarters of 2017, PVI Holdings’ total consolidated revenue was estimated to be VND6.6 trillion ($290.4 million), outperforming the firm’s nine-month target revenue by 5 per cent and achieving 76 per cent of the year’s planned revenue. The consolidated pre-tax profit was estimated at VND471 billion ($20.72 million), surpassing the firm’s nine-month target by 21 per cent and accomplishing 80 per cent of the annual plan.

After the slight recovery in late November, PVI Holdings’ reference stock quote was recorded at VND35,500 ($1.56) per share in the December 4 trading session, with the order matching volume of 326.700 units. On average, over the last ten trading sessions, PVI’s order matching volume reached 330,344 units.

In the event of PVcomBank successfully divesting two million shares in the third transaction, the bank would lose the right to gain dividends worth VND4 billion ($176,021) from the insurer.

PVcomBank provides a wide range of banking services, such as corporate finance, financial advisory services and personal finance services.

PVI Holdings was founded in 1996 as a PetroVietnam subsidiary, providing insurance services for property risk and business operations of the parent group.

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By By Sam Luong

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