Japanese bank to buy 15-percent stake in Vietcombank

File photo shows a Vietcombank office in Vietnam

Mizuho Corporate Bank (MHCB), an affiliate of Japan’s Mizuho Financial Group, will buy a 15-percent stake in the Joint Stock Commercial Bank for Foreign Trade of Vietnam, or Vietcombank.

Under a contract signed in Hanoi on Sept. 30, the transaction, worth 567.3 million USD, will be realized in the first quarter of 2012 following approval by relevant agencies.

MHCB will buy 347.6 million new shares issued by Vietcombank at a price of 34,000 VND per share. The bank will appoint a representative to serve as a member of the Vietcombank board of directors.

MHCB will become Vietcombank’s only strategic partner and provides technical assistance services for the Vietnamese bank’s operations.

Speaking at the signing ceremony, Deputy Prime Minister Vu Van Ninh applauded the cooperation between Vietcombank and Mizuho - two powerful financial institutions of the two countries, saying this is very important for improving the efficiency of Vietcombank’s operation in particular and of Vietnam’s economy in general.

By June 2011, Vietcombank posted nearly 344.2 trillion VND (16.5 billion USD) in total assets and 55 trillion VND (2.6 billion USD) in market value.

Meanwhile, Mizuho is one of the world’s largest financial service providers with a market value of 35.5 billion USD and total assets of 2 trillion USD.

Source: Vietnam News Agency

Other news