VietNamNet Bridge - Sacombank (STB), the fourth largest listed bank on the Vietnamese stock market, is rumoured to be the target of a takeover. Though its chairman Dang Van Thanh denied such a possibility, the recent movements around STB shares are drawing a lot of investor attention.

Rumours started circulating around the end of June when more than 25 million STB shares were exchanged in just one week on the HCM City Stock Exchange, from June 29 to July 7. It is said that several large investors have been collecting STB shares since April 2010, and that they currently have an approximate 30 per cent stake in the bank.

Though currently unable to confirm the ownership rate of those investors, market insiders voiced their concerns of a possible takeover.

According to STB's shareholder structure, STB chairman Dang Van Thanh currently holds a 20 per cent stake, while investment fund Dragon Capital has over 8 per cent, ANZ bank about 10 per cent and Refrigeration Electrical Engineering Joint Stock Co (REE) about 4 per cent.

ANZ authorised Thanh to represent its interests in STB but many investors are sceptical of this authorisation, as it can change at any time.

REE's chairwoman, Nguyen Thi Mai Thanh was quoted in Dau tu chung khoan (Securities Investment) newspaper that her company received an offer to buy the REE's entire holdings of STB, but the firm considered its STB investment a long-term deal.

However, she said if certain partners paid a very high price, the company could re-consider, but, "this has yet to happen".

Dragon Capital gave no comment on this matter but it is a financial investment fund, making a profit is its top priority; thus the possibility of it selling its holdings remains if a satisfactory price is offered. Last year, it sold its entire 15 year-old stake in VPBank for a price of nearly three times its value on the over-the-counter market.

Last week, family members of STB chairwoman Dang Van Thanh registered to sell 15 million STB shares to Thanh Thanh Cong Joint Stock Co, the chairman of which is his wife and deputy general director his daughter-in-law.

Thanh said the share sale plan of his family members was aimed at transferring ownership from individuals to a company so that the firm could manage its stake "more professionally".

To market insiders, this move could be seen as a defence motion under the pressure of being acquired, however.

Thanh said he had no information regarding who was buying STB shares, but that according to the bank, transparency was the norm and he welcomed all Sacombank investors to continue to contribute to the bank's development.

"Investors owning STB shares in accordance with the law are allowed to participate in the bank's management board. But investors who go against the cooperation policy and common interests of shareholders will be monitored," said Nguyen Tan Thanh, head of the bank's control board.

Sacombank is one of the largest private banks with a charter capital of almost VND9.2 trillion ($445.6 million) and total assets expected to reach VND160 trillion ($7.76 billion) by the end of this year. It is estimated to earn a before-tax profit of VND1.49 trillion ($72.3 million) in the first half of the year. STB's shares closed yesterday unchanged at VND13,900 ($0.67).

Source: VNS