Japan’s SMBC in talks to raise VPBank stake to about 20%, Reuters reports

Investing.com-- Japan's Sumitomo Mitsui Banking Corp. (SMBC) is in advanced talks to increase its stake in Vietnam's VPBank (HM:VPX) to about 20%, as the Japanese lender seeks deeper access to one of Southeast Asia's fastest-growing banking markets, Reuters reported on Thursday, citing people familiar with the negotiations.

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SMBC, the banking arm of Sumitomo Mitsui Financial Group (TYO:8316), currently owns 15% of VPBank after paying $1.5 billion for the stake in 2023, the report said.

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The two sides aim to complete the transaction this year but remain divided over valuation, with VPBank seeking a substantial premium to its share price, the report added.

SMBC has been reluctant to match the roughly 40% premium it paid in 2023 and has considered buying shares in the open market rather than through a private placement, Reuters reported.

At current prices, a 5% stake would be worth about $425 million. VPBank is also discussing a share sale to foreign investors that could raise $700 million to $900 million, the report said.

The potential increase would strengthen SMBC's access to Vietnamese consumers and businesses, including insurance and credit markets, while supporting Japanese corporate clients operating in Vietnam.

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Original Article

Japan's SMBC in talks to raise VPBank stake to about 20%, Reuters reports

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