SHB courts foreign stakeholders with $2.2 billion valuation

According to Reuters, contingent upon receiving the green light from the State Bank of Vietnam, this transaction is slated for completion either this year or in early 2024.

In response to an inquiry by Reuters, an SHB spokesperson commented, "We are proactively exploring alliances with a diverse array of partners, including those from abroad, with a view to optimising the benefits for both the bank and its shareholders."

During its AGM on April 11, SHB declared its intention to persist with the issuance of shares specifically catered to foreign investors. The bank unveiled that since the start of 2022, they have embarked on strategic collaborations with a number of prominent financial institutions and organisations.

However, the turbulence in the financial markets towards the end of 2022 impinged on the valuation of public companies and banks. This prompted a strategic pause in SHB's share issuance, designed to safeguard incumbent shareholders and ensure appropriate issue pricing. SHB confirmed the reinstatement of this plan in 2023.

Do Quang Hien, chairman of SHB's Board of Directors, signalled a notable pivot in the bank's approach towards foreign shareholder engagement at the shareholders' meeting. Drawing an analogy with a woman courted by multiple suitors, he eluded that whilst SHB prioritises consistent and faithful partners, it is now receptive to those interested in contributing to management and making a long-term commitment.

"Although a 10-20-year commitment is yet to materialise, we've intensified our engagement with foreign financial conglomerates and are prepared to accept investments lasting 3-5 years," Hien remarked.

He further revealed that SHB anticipates bringing on board a short- or medium-term investor either by year-end or early next year, promising to consult shareholders before finalising such arrangements.

In mid-June, a consortium of 21 shareholders, including 19 individuals and two organisations, inked an agreement to transfer a substantial portion of Saigon - Hanoi Insurance Corporation (BSH) equity - the insurance subsidiary of SHB.

This transaction involved the sale of 75 million shares, which corresponded to an ownership stake of 75 per cent in the company, to DB Insurance – a South Korean firm.

DB Insurance Co., which forms an integral part of the DB Group ecosystem, is a non-life insurance provider in South Korea. The company has garnered a distinguished reputation for its unwavering commitment to sustainable practices and has been consecutively listed on the Dow Jones Sustainability World Index for several years.

Previously, DB Insurance finalised a pact to acquire a controlling stake of 75.18 per cent in Vietnam's Aviation Insurance Corporation.

SHB seeks international investors During last week's annual shareholders' meeting, SHB approved a plan to issue additional shares to strategic foreign investors. The bank has been working with potential overseas partners, including major financial institutions, and expects to have a deal in place soon.

Local banks seek foreign funding On May 23, Saigon-Hanoi Bank (SHB) announced the completion of the transfer of a 50 per cent stake in its consumer finance subsidiary SHB Finance to its Thai partner, Krungsri Bank. Over a year on from initially signing the contract to sell the stake, SHB has now received $78 million from its foreign partner.

South Korean DB Insurance acquires 75 per cent stake in Saigon - Hanoi Insurance Corporation DB Insurance continues its expansion in the Vietnamese insurance market with the acquisition of a 75 per cent ownership stake in Saigon - Hanoi Insurance Corporation (BSH), following its recent deal to acquire Aviation Insurance, positioning itself as a major player in the industry.