Petrolimex plans to divest from private creditor PG Bank via public auction through the Ho Chi Minh Stock Exchange (HoSE).
The starting price will take the highest price of one of two options: First, the price determined by an organization with asset-based valuation functions of VND21,300 ($0.91) per share. Second, the average reference price of 30 consecutive trading sessions of PGB shares on the Unlisted Public Company Market (UPCoM) before the approval date of the divestment plan.
Petrolimex, a gasoline retail giant, is currently the largest shareholder in PG Bank, which is registered on the UPCoM as PGB.
According to Petrolimex's financial report, by the end of 2022, the value of its investment in PG Bank was more than VND1,834 billion ($78.21 million), equivalent to VND15,285 ($0.65) per share.
If Petrolimex divests from PGBank with a starting price of VND21,300 per share, it can collect VND2,556 billion ($109 million). If calculated according to the market price of PGB, it can collect VND2,340 billion ($99.79 million).
As soon as the news about Petrolimex's divestment spread, PGB shares climbed 15% to VND19,500 ($0.83) per unit at Friday's closing session.
In 2022, PG Bank's pre-tax profit reached VND506 billion ($21.58 million), up 54% year-on-year and exceeding its target by 24%.
As of December 31, 2022, PG Bank's total assets were nearly VND49,000 billion ($2.09 billion), up about 21% compared to the end of 2021. Credit increased by 5.6%, while capital mobilization rose by more than 11%.
In July, the State Bank of Vietnam allowed Petrolimex to divest its entire 40% stake, or 120 million shares in PG Bank. The auction was expected to occur in the third quarter of 2022.
Previously, Petrolimex announced it would complete divestment in PG Bank within 2021, but at its 2022 annual general meeting, the implementation period was delayed to the first half of Q4/2022.
Meanwhile, PG Bank had planned to merge with state-controled VietinBank in 2015 and HDBank in 2018, with both options later cancelled.
At the closing session on July 19, the PGB shares price hit VND21,000 a piece. Market capitalization is estimated at VND6,300 billion ($268.95 million).