Vietnam To Allow HSBC To Raise Techcombank Stake To 20%
Tuesday August 12nd, 2008 / 12h57
HANOI -(Dow Jones)- Vietnam's Prime Minister Nguyen Tan Dung has agreed to allow HSBC Holdings Plc (HBC) to buy a further 5% stake in Technological and Commercial Joint Stock Bank, or Techcombank, a central bank statement said Tuesday. "The prime minister on July 30 agreed that Techcombank can sell additional shares to allow HSBC to raise its stake to 20%," the statement said. This is the first time the State Bank of Vietnam has allowed a foreign bank to own a 20% stake in a Vietnamese bank. HSBC previously said it was keen to raise its stake in Techcombank to 20% at the right timing and price, but any deal was subject to government approval. In July last year, Vietnam's central bank gave HSBC approval to raise its Techcombank stake to 15%. In reaction to the news, Techcombank shares were trading up at VND26,000 each in the over-the-counter market in Hanoi Tuesday, up from VND22,000 Monday. -By Nguyen Pham Muoi, Dow Jones Newswires; 84 913220614; phammuoi.nguyen@dowjones.com Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/al?rnd=WwUGXuM5wyJmFTKP%2BNcDNQ%3D%3D. You can use this link on the day this article is published and the following day.
