Vietnam's Dong A Bank may sell 100 mln shares to Kinh Do


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Vietnam's Dong A Bank may sell 100 mln shares to Kinh Do


A file photo taken at a Dong An Bank branch in Ho Chi Minh City. Photo: Diep Duc Minh 
Vietnam's unlisted Dong A Bank is seeking shareholders' approval to sell 100 million shares in a new issue to confectionary firm Kinh Do Corp and use proceeds to boost finance, the bank said.
If approved at a meeting on July 21, the VND1 trillion (US$46 million) proceeds will be used to raise the Ho Chi Minh City-based bank's registered capital by 20 percent to 6 trillion dong, Chief Executive Officer Tran Phuong Binh said in a report released to shareholders.
"Kinh Do Corp is an investor who can meet all legal requirements to become Dong A Bank's strategic investor and the company is committed to buying all the shares" in the issue, Binh said in the report posted on the bank's web site. (
Officials at Kinh Do Corp, based in Ho Chi Minh City, were not immediately available for comment.
Kinh Do shares ended up 3.85 percent at 45,800 dong on Friday.
Dong A Bank is the 16th largest among Vietnam's 33 partly private lenders by assets. The bank said its net profit last year plunged 92 percent from 2013 to 26.98 billion dong ($1.24 million) following lower revenues.

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