VietinBank to sell shares to Bank of Nova Scotia in H2: report

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VietinBank, Vietnam's largest listed lender, will complete the sale of a 15 percent stake to Canada's Bank of Nova Scotia in the second half of 2011, a local newspaper said on Wednesday.

The sale, worth 3.57 trillion dong ($174 million) in face value, would be conducted via a new share issue in the third or the fourth quarter, the central bank-run Banking Times newspaper reported, after VietinBank shareholders had approved the plan.

The sale, a delay from an initial target to complete it in the second quarter ended June, is part of a plan to raise VietinBank's registered capital by 41 percent to 23.8 trillion dong this year, shareholders were told by the bank's management at an annual meeting on Tuesday.

The report did not disclose the actual value VietinBank intended to raise from the sale.

In October, the International Finance Corp bought 10 percent of Hanoi-based VietinBank for $186 million.

After completing the capital-raising plan this year via share issues, the state ownership in VietinBank will drop to 68.26 percent from 80.3 percent now, the newspaper reported.

VietinBank shares were up 3.7 percent in early trading on Wednesday.

The bank has projected raising its full-year gross profit this year by 11 percent to 5.1 trillion dong and is seeking to achieve an annual growth of 20 percent each for credit, deposits and the total assets, VietinBank said in a report to shareholders last month.

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