Agribank to sell ALCI

11-Nov-2017 Intellasia | BizLive | 6:00 AM Print This Post

The Commercial Joint Stock Bank for Agriculture and Rural Development of Vietnam (Agribank) has announced about the sale of its wholly-owned Agribank Leasing Joint Stock Company I (ALCI). According to Agribank, the sale of ALCI is carried out under the guidance of the State Bank of Vietnam on the Plan to handle ALCI legal entity and the resolution of the fourth meeting of the Agribank’s Board of Members in 2017. The sale of ALCI is also in accordance with Decision 128/2014/ND-CP (dated December 31st 2014) of the government on selling, handing over, and transferring of 100 percent state-owned enterprises. Established in 1998, ALCI is an independent accounting unit under Agribank. With a charter capital of 200 billion dong, the company is allowed to raise capital at 20 times larger than its charter capital. The main businesses of ALCI are financial leasing, mobilisation capital with terms from one year and more, issuance of valuable papers such as bonds, certificates of deposits, promissory notes, and bills, etc. with terms of over one year; and other activities in accordance with the provisions of law. Investors having sufficient financial capacity and being qualified under the relevant law can send application for directly register to buy ALCI at the Investment Board of Agribank before December 15th 2017. It is known that in 2008, ALCI auctioned over five million shares at its Initial Public Offering (IPO) and expected to raise charter capital to 350 billion dong. However, the IPO of ALCI was unsuccessful as the selling ratio did not reach the minimum level of 20 percent of charter capital, although the starting price was only 10,500 dong per share. Thus, ALCI had to build a Scheme to restructure its business activities and submitted to the competent authorities for approval. Investors purchased shares of ACLI were facing troubles because Agribank did not respond them about the amount of shares they purchased. Leaders of Agribank has instructed ACLI to repay for the capital used to purchase shares and other benefits in accordance with the regulations for shareholders, right after the approval of ACLI’s restructuring scheme.

 


Category: Finance, Vietnam

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