The deal will raise VietinBank Insurance Co., Ltd´s capital to $28.6 million so as to improve its balance sheet and expand its operations.
Korean-based Hyundai Marine & Fire Insurance Co., Ltd (HMFI) announced that it will acquire a 25-per cent stake in Vietinbank Insurance Co., Ltd (VBI), a subsidiary of Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank).
VBI will issue 6.7 million shares to Korean partner to raise its capital to VND667 billion ($28.6 million). The transaction is expected to be completed in the first half of 2019 after being approved by the competent authorities.
Previously, VBI held the general meeting of shareholders (GMS) to approve the plan to increase charter capital through the private placement of shares to foreign investors.
The GMS showed that since June 2018, 33 foreign investors have officially asked to purchase shares of VBI.
Among them, HMFI was the most qualified and selected to negotiate the purchase of VBI's privately placed shares.
To promote this deal, HMFI has set out one condition that there will be at least one staff from foreign investor appointed to VBI´s Board of Directors (the staff will not be involved in VBI´s business operation) to join in VBI´s administration as well as offer the best support to VBI.
This staff will be appointed to VBI´s Board of Directors right at the time when the Ministry of Finance approves in writing the increase of VBI´s charter capital and foreign shareholders.
This content is also one of the terms set out in the share acquisition agreement signed between VBI and HMFI and the strategic cooperation agreement signed between HMFI and VietinBank.
HMFI will also be subject to a transfer restriction that is deemed to be up to 10 years from the time of completion of the share acquisition, except in certain cases specifically agreed upon by the parties.
"The involvement of foreign investors will help VBI strengthen its balance sheet and enhance its operational safety. At the same time, technical assistance and business cooperation with foreign investors will help VBI exploit more important resources to improve its governance, develop IT platforms, enhance risk management in the field of non-life insurance, train and develop excellent human resources and solidify the prestige of the VBI brand domestically and internationally," stated VBI.
In 2017, VBI was named in the top 10 largest insurance companies in Vietnam. Its total insurance revenue in 2017 reached VND1.01 trillion ($43.3 million), up 29.4 per cent over 2016. The company reported a pre-tax profit of VND84.5 billion ($3.62 million).
Meanwhile, HMFI is one of Korea's largest non-life insurers in terms of revenues and assets. The company received the rating A (excellent) affirmed by AMBest and A-credit rating affirmed by S&P.
Tags:
Tags:
The global electric vehicle boom presents numerous opportunities for Vietnam's economy, supported by leading technology suppliers like Bühler Group.
A.P. Moller–Maersk has launched its first bonded warehouse in Vietnam, situated in the SLP Park in Nam Dinh Vu Industrial Park, Haiphong.
Vietnam's T&T Group and Qatar’s JTA investment group have unveiled plan to develop a $4.5 billion international-standard sports complex and Disneyland-style theme park in Hanoi’s Dong Anh district.
This initiative aims to bring unique agricultural products from the region to visitors and consumers in Vietnam.
Michelin has been selected by NASA to participate in the research team for phase 1 of the Artemis project. The company's task involves researching and developing specialized airless wheels intended for lunar rovers.
Bcons Group has been leaving a lasting impression on the southern Vietnam’s real estate market. At the core of its achievements lies a single principle - “Trust” - the foundation that has propelled the company toward success and accelerated its transformation into a multi-industry conglomerate.
