KIDO yet to invest in DongABank

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KIDO yet to invest in DongABank

Saigon Times - 8/7/2015 10:13:53 AM

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KIDO Corporation has yet to buy VND1 trillion (US$45.9 million) worth of DongABank shares as the two sides have suspended negotiations over the share purchase, a source familiar with the situation said.

According to the source, KIDO reckoned that now is not the right time for it to buy into DongABank.

At its general meeting last month, the bank said it would increase chartered capital from VND5 trillion to VND6 trillion some time this year and that KIDO would buy 100 million shares worth VND1 trillion to become a strategic shareholder of the bank.

DongABank explained that after talks with many partners, it found Kinh Do Corporation, which was renamed as KIDO after Mondelez International had spent US$370 million acquiring an 80% stake in Kinh Do’s snack business, meeting all requirements to become a strategic investor.

The source told the Daily that KIDO inked a comprehensive partnership with DongABank and planned to invest in the latter.

The source from KIDO told the Daily earlier that the corporation would decide on the share acquisition deal after looking into DongABank’s audited business and investment assessment reports.

A leader of the State Bank of Vietnam (SBV) said the SBV had yet to receive a proposal from the corporation for purchasing DongABank shares.

However, he said, a foreign investor is exploring the possibility of investing into DongABank.

Last year, the bank obtained consolidated after-tax profit of a mere VND26.9 billion. As of the end of 2014, bad debt at the bank had reached nearly VND1.95 trillion, down VND170 billion against 2013 and making up 3.76% of its total outstanding loans.

DongABank shares on the OTC market jumped from VND3,500 each a month ago to VND4,700-4,800, buoyed by news about KIDO’s plan to buy DongABank shares for VND10,000 each.

The bank’s exisiting major shareholders include PNJ with 7.7%, CEO of DongABank Tran Phuong Binh and his family with 9.6% and Construction Company 79 with 10%.

At the general meeting, DongABank did not present a plan for its new board of directors as it had yet to get the central bank’s approval for the plan, but chairman Cao Sy Kiem told the meeting that he would step down.

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