Bao Viet share prices have been dropping dramatically since the auction. And a question has been raised about whether Bao Viet can find suitable foreign strategic shareholders.
Le Quang Binh, Chairman of Bao Viet, said that the insurer was still in the process of selecting foreign strategic shareholders.
Before the auction was organised, you said that Bao Viet would conduct negotiations to choose foreign strategic shareholders with reference to the final price of the share auction. Could you please tell me about the negotiation outcome?
Right after the final price of the auction was determined, Bao Viet began negotiating with financial and insurance groups which are interested in becoming strategic partners of Bao Viet.
The negotiations will be conducted with the focus on two aspects. First, the technique negotiation. Bao Viet will consider the partners’ capability to give technical assistance (assistance in IT will be appreciated), and assistance in corporate governance and competitiveness improvement. The second aspect is the price of shares. And there is the principle that we must follow, that the price of shares to be sold to strategic investors must not be lower than the average final price of the auction.
Bao Viet has announced the result of the auction to the consultant. Under the current regulations, the average final price of the auction will serve as the basis when Bao Viet offers shares to strategic shareholders.
Do you mean that the average auctioned price of VND73,910/share is not the final price, based on which Bao Viet will negotiate with strategic shareholders?
Yes, I do. The VND73,910/share price level is not the final average price. The final average price will only be defined after June 26, when investors must pay money for the shares they got the right to buy at the auction.
Could you please tell me what interests foreign investors about Bao Viet?
Foreign investors highly appreciate Bao Viet’s potential; they are also interested in Bao Viet’s trademark in the market.
The lowest price level at which foreign investors successfully bought shares at the auction was VND70,200/share. 103 foreign investors, including 15 institutions and 88 individuals, got the right to buy 13,049,400 shares.
The figures will serve as important information for foreign strategic shareholders for reference.
Source: VNE
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