HANOI : Commonwealth Bank of Australia said it has sold around 5 per cent of its shares in Vietnam International Commercial Joint Stock Bank, as part of its strategy to focus on its businesses in Australia and New Zealand.
CBA, Australia’s largest lender, held 19.8 per cent of VIB’s shares, according to VIB’s report in August, making CBA the Australian bank with the biggest stake in Vietnam.
Reuters reported in June on CBA’s possible exit from VIB after VIB’s board had proposed cutting the cap on shares held by foreign investors to 4.99 per cent of the bank’s charter capital from the current 20.5 per cent from July 1.
The proposal was later approved by the bank’s shareholders at an extraordinary meeting, but it is not clear how it applies to existing shareholders.
The transaction was executed on Tuesday, according to a statement released by CBA, with settlement expected on Thursday.
Total gross proceeds to CBA from the transaction are approximately A$160 million ($109.49 million), the statement added.
VIB is a midsize bank in Vietnam with a market capitalisation of $2.3 billion. Shares of VIB rose 3.24 per cent to 19,100 dong each as of Tuesday’s close.
CBA declined to comment on whether the bank would sell its remaining shares at a later stage. VIB did not immediately respond on CBA’s move.
($1 = 1.4613 Australian dollars)
