UPDATE: Standard Chartered Upgrades Stake In Vietnamese Bank
Friday May 2nd, 2008 / 15h25
By Ragnhild Kjetland Of DOW JONES NEWSWIRES LONDON -(Dow Jones)- Standard Chartered PLC (2888.HK) said Friday it has upped its stake in Asia Commercial Bank (ACB.VN) as it seeks to enhance its presence in the fast-growing Vietnamese market. The London-based bank, which gets around 90% of profits from Asia and other non-U.K. markets, said it has bought 6.16% in ACB as well as 7.10% of ACB's convertible bonds. "This bank is growing at a phenomenal pace," said spokesman Arijit De. In 2007, ACB's net profit grew by more than 200%. In 2005, Standard Chartered bought 8.56% in ACB for $22 million. The spokesman wouldn't comment on the price paid for the additional stake, which brings the total to 15.86%. Standard Chartered already has representation on ACB's board. ACB is largely a retail bank with around 120 branches. At year-end, its gross assets totaled $5.4 billion. "We think Vietnam is a very important market and we want to increase our presence there. We'll do that through organic growth, but we are also looking at inorganic opportunities," the spokesman said. Foreign banks aren't allowed to own more than 20% of Vietnamese banks, but recently both Standard Chartered and another large U.K.-based player in the Asian markets, HSBC Holdings PLC (HBC), received approval to incorporate in Vietnam. Incorporation will allow Standard Chartered to go ahead with organic expansion plans and open as many as 20-30 new branches in the country over the next four years under its own brand. It currently has three branches in Vietnam. At 1408 GMT, Standard Chartered shares were up 52 pence, or 2.8%, to 1,882 pence in a sharply higher overall U.K. market. Company Web site: http://www.standardchartered.com -By Ragnhild Kjetland; Dow Jones Newswires; +44 207 842 9268; ragnhild.kjetland@dowjones.com
