MB prepares for private placement

27-Feb-2020 Intellasia | Vietnam Finance | 6:02 AM Print This Post

Information of the State Securities Commission (SSC) mentioned that the agency has received a complete application file for private offering of Military Commercial Joint Stock Bank (MB, stock code: MBB).

The issuance plan is implemented in accordance with the Resolution No.26/NQ-MB-DHDCD dated April 27th 2019 of the Annual shareholders meeting in 2019, Resolution No.55/NQ-MB-HDQT dated December 6th 2019 of the Board of directors, Decision No.500/QD-HS dated February 3rd 2020 of general director, and the provisions of law.

Previously, in the report on treasury stock trading results submitted to the SSC, MB said that it has sold 21,436,860 treasury shares from December 30th 2019 to January 29th 2020.

The report did not disclose specific average transaction price. According to MB, the transaction price “is consistent with the price range reported to the SSC before making transactions at Report No.1365/BC-MB-HDQT dated December 6th 2019, in line with the provisions of law, and ensures interests of MB’s shareholders.”

Compared to the 23 million shares registered to sell, the realised number is lower with 1,563,140 shares.

MB’s leader said that the reason why the registered shares were not fully sold is that the price did not reach the approved level of MB’s Board of directors according to Report No.1365/BC-MB-HDQT dated December 6th 2019 which was reported to the SSC.

After completing the transaction, MB currently owns 25.6 million treasury shares.

According to the plan set at the 2019 Annual Shareholders Meeting, MB will increase its charter capital from 21.604 trillion dong to 25.840 trillion dong (an increase of 4.236 trillion dong) in two phases.

The first phase consists of two components: increasing charter capital by 1.690 trillion dong via issuing shares to pay dividends at a ratio of eight percent, and increasing charter capital by 432 billion dong via the issuance of shares under the Employee Stock Ownership Plan (ESOP) (equivalent to two percent of the charter capital).

In 2019, MB completed the first phase, raising its charter capital from 21.604 trillion dong to 23.727 trillion dong.

In the second phase, according to initial plan, MB would increase its charter capital from 23.727 trillion dong to 25.840 trillion dong via issuing 211.3 million individual shares, increasing the charter capital by 2.113 trillion dong. MB also plans to sell 47 million treasury shares but this transaction would not increase charter capital.

As mentioned in the above, MB has not completed its plan to sell 47 million treasury shares, and managed to sell 21.4 million treasury shares.

Regarding the private placement, on January 31st 2020, the SBV has approved in writing to increase MB’s charter capital from 23.727 trillion dong to 24.417 trillion dong, an increase of 690 billion dong (equivalent to 69 million shares at par value).

Thus, it is likely that MB’s capital increase via private placement this time will not be as the original plan (offering 211.3 million shares). The maximum number of individual shares offered for private placement is 69 million units.


Category: Finance, Vietnam

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