Son of VIB chairman sells entire stake in bank

Vietnam International Bank (VIB), one of the country’s major retail banks, has announced that Dang Quang Tuan, the son of bank chairman Dang Khac Vy, has sold out more than 124.7 million shares, equivalent to a 4.916% stake.

The transaction was carried out from July 21 - August 9 following the agreement method.

VIB's share price finished at VND20,650 ($0.87) per unit on Thursday, and Dang Quang Tuan is estimated to make nearly VND2.6 trillion ($109.5 million) from the transaction.

In July, Tuan registered to sell more than 124.7 million VIB shares from July 21 to August 21. During the same period, Funderra JSC, an organization related to chairman Dang Khac Vy, registered to buy 124.7 million VIB shares. At the time of subscription, Funderra did not own any VIB shares.

VIB is a full-service commercial bank headquartered in Ho Chi Minh City. The lender will increase its charter capital by 20.4% to almost VND25.37 trillion (over $1.08 billion) under plans adopted at its annual general meeting (AGM) on March 15. Consequently, VIB will issue shares to its existing shareholders and staff members.

The capital hike aims to serve the bank’s strong and sustainable growth and digitalization strategy as well as sharpen its competitive edge and maintain human resource development.

The AGM approved the bank’s plan to offer a 35% dividend ratio for shareholders in cash (15%) and bonus shares (20%).

At present, Commonwealth Bank of Australia (CBA) is the largest shareholder in VIB, holding around 20% of its charter capital since 2010. CBA is one of the biggest banks in the world, with market capitalization of about $122 billion.