Japanese insurer Sumitomo Life has registered to buy more than 41.4 million shares of local insurer insurance-finance-banking group Bao Viet Holdings (BVH).
Sumitomo currently owns more than 122.5 million BVH shares, equivalent to 17.48 per cent of the total outstanding voting shares of Bao Viet Holdings.
If the transaction is successful, Sumitomo will raise its total ownership in BVH to nearly 164 million shares, equivalent to 22.09 per cent of the company’s capital.
Earlier, BVH approved a private placement of more than 41 million shares to increase its charter capital. These shares will be restricted for transfer within one year from the date of completion of the offering.
About VND2.5 trillion from the proceeds will be used to increase capital for BVH’s member units, VND200 billion to invest in information technology infrastructure and the rest to supplement working capital.
On the stock market, BVH has decreased sharply by 23 per cent since the beginning of this year, from VND87,800 to VND68,000 per share.
