Standard Chartered ups stake in Asia Commercial Bank to 15%

Monday, May 5, 2008
Standard Chartered Bank has increased its stake in Asia Commercial Bank to 15%.
Standard Chartered acquired a 6.16-per-cent interest from the International Finance Corporation (IFC), raising its holdings from 8.84% to the maximum of 15% allowed to be held by a single foreign strategic investor.
Under the deal, the London-based bank also increased its holdings in Asia Commercial Bank's outstanding convertible bonds from 8.76% to 15.86%.
The acquisition is subject to appropriate regulatory approvals.
Ray Ferguson, regional CEO of Standard Chartered in Southeast Asia, said his bank was impressed with Asia Commercial Bank's growth over the past three years, a rate far higher than the industry average in Viet Nam.

"Standard Chartered's move to increase its shareholding is a vote of confidence in ACB's growth strategy and potential," he said.

ACB chairman Tran Mong Hung expected that, as a major shareholder, Standard Chartered would be able to provide further technical support, benefiting ACB in its operations.

"With Standard Chartered acquiring a larger stake and strengthening its strategic partnership with ACB, the role of IFC, particularly in supporting ACB's transition into a leading commercial bank in Vietnam, is fulfilled," said Richard Ranken, IFC director for East Asia and the Pacific.

Standard Chartered has been a shareholder and strategic partner of ACB since July 2005. As of December 2007, the ACB's assets were worth US$5.4bil. (VNS)