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Banking & Finance

Techcombank to repurchase treasury stocks

Released at: 14:47, 27/06/2017

Techcombank to repurchase treasury stocks

Illustrative image (Source: cafef.vn)

Shareholder vote in favor of plan and also HSBC's divestment from bank.

by May May

The Vietnam Technological and Commercial Joint Stock Bank (Techcombank) has announced a resolution presented to its general meeting of shareholders approved the repurchase of treasury stocks and allowed the Hongkong and Shanghai Banking Corporation Limited (HBSC) to divest from the bank.

The repurchase will not cut charter capital. The number of shares is expected to be 221.95 million, or 25 per cent of the total number of outstanding Techcombank shares.

The price will not be lower than VND23,445 ($1.03) per share and will be the same for all shareholders involved in the repurchase. The bank will have to spend at least VND5.294 trillion ($232.80 million) buying shares.

Techcombank has also delayed plans to increase charter capital in 2017.

HSBC’s divestment from Techcombank, it will be conducted as a repurchase.

HSBC owns about 20 per cent of Techcombank and the transaction will be deployed through repurchasing treasury stocks of Techcombank, according to the Ho Chi Minh City Securities Company (HSC).

It purchased the Techcombank shares for VND60,891 ($2.67) per share. After that, Techcombank conducted profit sharing by issuing bonus shares and paying dividends from 2008 to 2010, causing the price to fall to VND26,000 ($1.14) per share.

From 2010, Techcombank has implemented a strategy of not paying dividends, to increase equity.

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