Sacombank plans to sell last of stakes in former securities subsidiary

Sacombank plans to sell all the remaining shares it holds in SBS at the end of this month and beginning of August. — Photo courtesy of the bank

HCM CITY — Sacombank plans to sell the remaining shares it holds in Sacombank Securities Joint Stock Company (SBS) as part of its strategy to restructure ineffective investments and increase revenues.

It began selling stakes in SBS in early 2010, when it reduced its holdings to 64.9 per cent.

The divestment continued, with the lender selling stakes in 2011 and several subsequent years, gradually reducing its ownership in the securities company to 10.21 per cent, equivalent to 13.87 million shares.

Since 2011 Sacombank has not been SBS’s parent company.

At the end of July and beginning of August it plans to sell all the remaining shares at a price of VNĐ11,000-12,000. The proceeds will be used for its business activities to improve the efficiency of its core businesses.

It has also taken a number of other strategic measures such as selling all treasury shares, focusing on handling bad debts and outstanding assets, reducing the dependence on funding sources that are sensitive to market fluctuations, enhancing investments in technology, and increasing revenues from services and demand deposits.

These are expected to help the bank to foster its business activities and complete its restructuring effectively and ahead of schedule. — VNS