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Banking & Finance

SHB parts company with SHS

Released at: 17:40, 26/08/2016

SHB parts company with SHS

Photo: Duc Anh

Saigon - Hanoi Bank sells entire 4.8% holding in Saigon - Hanoi Securities.

by Hung Khanh

Saigon - Hanoi Bank (SHB) is no longer a shareholder of the Saigon - Hanoi Securities JSC (SHS), after selling its 4.8 per cent stake.

“The SHB Chairman has sold 4.8 million SHS shares,” the Hanoi Stock Exchange (HNX) announced on August 25. The shares were sold in a negotiated transaction for VND6,600 ($0.3) per share, or VND31.6 billion ($1.41 million) in total.

Mr. Do Quang Hien was Chairman of SHS and SHB while Mr. Le Dang Khoa, Deputy Director of SHB, was also member of the SHS’s Board of Management, according to SHS’s first half report. Mr. Hien is also Chairman of T&T group.

SHS’s management post-divestment remains confidential. “SHB has completed its full divestment from SHS under a plan determined by our Board of Management,” a representative of SHB told VET.

This is second time SHB registered to sell its stake in SHS, with a June sale being unsuccessful. In late July it again registered to sell the 4.8 per cent.

SHB was the original and major shareholder in two securities companies: the SHB Securities Joint Stock Company (SHBS) and SHS. The bank currently holds over 98 per cent of SHBS.

SHS’s share price has fallen 4.69 per cent in the last week, as at August 25, 8.9 per cent in the last month, and 74.8 per cent lower since it was listed in the second quarter of 2009.

SHS is also preparing to issue 4,000 unconvertible corporate bonds with a par value of VND100,000 ($4.48), a maturity of two years, and a maximum value of VND400 billion ($17.93 million) to mobilize capital for depository activities and for collateral to borrow from SHB.

In the first half of 2016 SHS reported assets of VND3.71 trillion ($166.35 million), an increase of 30 per cent against December 31, 2015. Total equity stood at VND1.06 trillion ($47.53 million), 3 per cent higher against December 31, 2015. After-tax profit in the first half reached VND38.22 billion ($1.49 million), up 32 per cent.

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