Sumitomo Mitsui Negotiates Stake Increase in Vietnam's VPBank

Sumitomo Mitsui Banking Corp is in advanced negotiations to increase its ownership stake in Vietnam Prosperity Joint-Stock Commercial Bank from 15 percent to approximately 20 percent. The Japanese lender intends to deepen its exposure to the Vietnamese market to better serve consumers, businesses, and Japanese multinational clients.

While both parties aim to finalize the transaction this year, they remain divided over the valuation of the shares. VPBank is seeking a substantial premium over the current share price, mirroring the 40 percent premium paid during the initial 1.5 billion dollar investment in 2023. In response to these demands, the Japanese lender has considered acquiring the additional shares through open-market purchases instead of a private placement.

The negotiations occur as FTSE Russell recently upgraded Vietnam's stock market to emerging-market status, a shift expected to attract increased overseas capital. Additionally, reports from Turicum Investment Management AG indicate that VPBank expects a capital raise between 700 million and 900 million dollars.