Eximbank extraordinary shareholder meeting unsuccessful

Eximbank's extraordinary general meeting of shareholders for 2023 on Monday to elect additional board members for the 2020-2025 term could not proceed as planned due to insufficient attendance.

As of 8:21 a.m, the meeting had only 132 shareholders attending, representing 53.16%, equivalent to nearly 654 million voting shares. The meeting could not take place as the ratio is lower than prescribed (65%).

According to the meeting agenda, the board of directors for the term 2022 - 2025 is expected to get not more than three new members via voting, including one independent member. This is because two board members stepped down last October.

Both of them, Le Hong Anh and independent member Dao Phong Truc Dai, represent shareholders from Thanh Cong Group. They resigned for personal reasons.

On January 14, Eximbank announced three candidates for voting, approved by the State Bank, namely Le Thi Mai Loan, Pham Quang Dung, and Tran Anh Thang.

Previously, foreign investors sold 134 million Eximbank (EIB) shares on January 14, equivalent to 10.8% of the bank's charter capital, for VND3,421 billion ($146 million).

The transactions were made between Japan's Sumitomo Mitsui Banking Corporation (SMBC), the bank's major shareholder, and domestic investors. Most of the shares were traded for VND25,500 ($1.09) per unit.

On March 18, 2022, the Japanese financial institution officially announced in writing the termination of its strategic alliance agreement with Eximbank. In September, the representative of SMBC in Eximbank, Vo Quang Hien, left as a member of its board of directors.

With this move, SMBC's transactions of EIB shares no longer needed to be registered in advance, as in the case of related persons.

SMBC's divestment from Eximbank was made just a few days before a deadline set by the State Bank of Vietnam. Previously, on October 18, 2022, the central bank issued a document "approving the sale and transfer of all EIB shares owned by SMBC in Eximbank", valid for three months from the date of signing.

In early December, Eximbank forecast pre-tax profits of VND3.5 trillion ($146 million) for 2022, and set a pre-tax profit target of VND5 trillion ($208 million) for 2023, up 42.9% year-on-year.

The bank's total assets by the end of 2023 are expected to reach about VND210 trillion ($8.76 billion), up 14% against end-2022, of which its credit balance will reach VND146.6 trillion ($6.11 billion), up 14%.

On the Ho Chi Minh Stock Exchange, Eximbank closed Monday’s session at VND26,750 ($1.14).