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Australia’s CBA sells another 10% stake in Vietnam’s VIB

Australia’s CBA sells another 10% stake in Vietnam’s VIB

By Swedan Margen

Fashion

COMMONWEALTH Bank of Australia (CBA) has sold a 10 per cent stake in Vietnam International Commercial Joint Stock Bank (VIB) it said on Tuesday (Oct 29), following a previous divestment last month, as it focuses on its banking business 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.

It retains around 5 per cent of the shares on issue in VIB, CBA said in its statement on Tuesday.

CBA declined to comment when asked whether it would exit the Vietnamese bank. VIB did not immediately respond to a request to comment.

The divestments confirmed a Reuters report in June that the bank would reduce its foreign holdings.

The latest sale was executed on Tuesday, with settlement expected on Thursday, CBA’s statement said, adding the total gross proceeds were approximately A$320 million (S$279 million).

VIB is a midsize bank in Vietnam with a market capitalisation of US$2.2 billion. Its shares rose 2.74 per cent to 18,750 dong each as of Tuesday’s close. REUTERS

Originally published by businesstimes.com.sg. Syndicated material does not necessarily reflect the views of Grazia British.

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