Vietnam Insurance Corporation Bao Viet signed agreement to sell a 10 percent stake to the only foreign partner HSBC and a 3,56 percent stake to a domestic strategic partner Vietnam Shipbuilding Company Vinashin last night.
HSBC will pay VND4,121 billion (US$255 million) and Vinashin will pay VND1,467 billion (US$91 million) for the stake in Bao Viet, the country's leading insurance and financial group.
The sale marks the Bao Viet’s end of equitasation and start of a joint stock corporation.
The London and Hong Kong-listed bank will provide the company technical assistance, training and will second some staff as part of the deal, in an effort to tap into the expanding insurance market in Viet Nam.
"This investment and strategic partnership with Bao Viet reflects a growing commitment to Viet Nam, and is in line with HSBC's stated strategy of targeting investment at high growth markets with international connections," said Stephen Green, chairman of HSBC Holdings.
"Vietnam is one of the fastest growing economies in Asia, with average GDP growth of more than 7 percent in the past 10 years. We are honored to be able to play a leading role through this landmark transaction in the first equitisation of a major state-owned enterprise in Viet Nam."
Bao Viet is the market leader in both life and general insurance and has total assets of US$1.04 billion.