Mizuho Corporate Bank (MHCB), an affiliate of Japan’s Mizuho Financial Group, will buy a 15% stake in the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank).
Under a contract signed in Hanoi on September 30, the transaction, worth US$567.3 million, will be realised 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 VND34,000 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 VND344.2 trillion (US$16.5 billion) in total assets and VND55 trillion (US$2.6 billion) in market value.
Meanwhile, Mizuho is one of the world’s largest financial service providers with a market value of US$35.5 billion and total assets of US$2 trillion.