State Bank approves Petrolimex's divestment from PG Bank

The State Bank of Vietnam has allowed Petrolimex to divest its entire 40% stake, or 120 million shares, in private creditor PG Bank.

The auction is expected to occur in the third quarter of 2022.

Petrolimex, a gasoline retail giant, is currently the largest shareholder in PG Bank, which is registered on the unlisted public company market UPCoM as PGB.

Petrolimex can collect VND2,160 billion ($92.24 million) if successfully divesting from the bank. The figure is estimated based on the current market price of PGB.

By the end of Q1/2022, Petrolimex's investment in PG Bank was valued at more than VND1,712 billion ($73.11 million), according to its financial statement.

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 VietinBank in 2015 and HDBank in 2018, with both options later cancelled.

PG Bank recorded a net profit of more than VND234 billion (about $10 million) in Q1, down 12% year-on-year.

As of Q1, total assets reached more than VND37,795 billion ($1.61 billion), down 7% compared to the beginning of the year.

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).