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.
A file photo taken at a Dong An Bank branch in Ho Chi Minh City. Photo: Diep Duc Minh
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. (dongabank.com.vn)
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.