SMBC Nikko Securities Inc., a member of Japan’s Sumitomo Mitsui Banking Corp. (SMBC), is now no longer a major shareholder of Petrovietnam Securities JSC (PSI), according to the Hanoi Stock Exchange (HNX).
After nearly 12 years as a foreign strategic partner at PSI, SMBC Nikko Securities on October 6 withdrew all its capital from the Vietnamese company, said the HNX, where PSI lists its shares.
The Japanese firm sold all 8.9 million PSI shares, accounting for a 14.9% stake in the broker, for VND77.5 billion ($3.17 million), or about VND8,700 ($0.36) per share.
In 2011, SMBC Nikko Securities became PSI's foreign strategic partner after signing a contract to buy the stake at a price of VND15,000 ($1.39) per share under the then exchange rate.
On the HNX, PSI closed the Friday session at VND9,600 ($0.39)
SMBC Nikko Securities was established in 1918 under the name Nikko Cordial Securities. The securities company was acquired by Sumitomo Mitsui Financial Group (SMFG) - SMBC's parent company - in 2009.
In 2021, SMBC spent about $1.37 billion acquiring a 49% stake in FE Credit from Vietnamese lender VPBank. In March 2023, it reached an agreement to acquire 15% of VPBank's shares for $1.5 billion, after divesting from Eximbank.
SMBC became a strategic shareholder in Vietnam’s Eximbank (EIB) in 2007, with a 15% stake worth $225 million. However, disputes between Eximbank's shareholder groups for more than a decade derailed the Japanese investor's plans.
After many petitions to purge members of the bank's board of directors and unsuccessfully organizing an extraordinary general meeting of shareholders, SMBC decided to withdraw capital from the bank. At the end of 2019, SMBC withdrew its representative from Eximbank's board.