Leaders of Vietnam Export Import Commercial Bank (Eximbank) during its 27th annual general meeting last Saturday assured shareholders they will reap the rewards for investing in Saigon Thuong Tin Commercial Bank, or Sacombank.
Speaking at the meeting, Eximbank chairman Le Hung Dung said the board of directors could not tell shareholders about the incomplete investment deal but pledged to bring shareholders great results. The profits will be announced at the lender’s general meeting next year.
Dung also admitted that a group of shareholders had authorized the bank to invest in Sacombank, saying that they were potential and legitimate units. However, Dung refused to disclose any information about the group.
Truong Van Phuoc, vice chairman and general director of Eximbank, said that Eximbank is holding a 9.73% stake in Sacombank.
Explaining the acquisition, Phuoc said that Eximbank suffered pitiful financial investment results between 2007 and 2008 for buying around VND2.5 trillion worth of high-priced shares. The bank had to deduct VND600 billion for the provision fund given the sharp decline on the stock market.
“We had been searching for other investment channels and chose Sacombank as the banking sector is familiar to us. As Sacombank (STB) shares were just VND12,000-13,000 each at that time, we acquired STB shares as a financial investment,” Phuoc explained.
“Financial investments after all can be bought and sold. Some shareholders have offloaded shares while others have jumped in during our investment into Sacombank. As Eximbank is a prestigious and well-known bank, it is normal for us to represent a group of dominant shareholders to re-arrange Sacombank structure.”
Shareholders at the meeting also approved removal of Pham Huu Phu out of his post of Eximbank board member in the 2010-2015 term. Phu will serve as a board member of Sacombank in the future.
Before the meeting, Truong Van Phuoc, general director of Eximbank, was elected as vice chairman of the bank. Eximbank’s board of directors now has 10 members.
The bank has also decided to raise its chartered capital by 10% to over VND13.5 trillion in 2012. The lender will issue shares for existing shareholders at the 100:10 ratio.
The Saigon Times Daily