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VPBank (VPBank) owned by billionaire Ngo Chi Dung has introduced funding in OPES, a non-life insurance coverage firm by means of shares from present shareholders.
As soon as the transaction is accomplished, VPBank’s possession ratio in OPES will rise to 98 p.c and it’ll turn into the dad or mum firm of the insurer.
VPBank plans to spend VND585 billion to accumulate 47.85 million OPES shares, or 87 p.c of constitution capital, on the common value of VND12,200 per share.
VPB shares have been lowering just lately amid the downward pattern of the inventory market, from VND40,000 per share in early April to VND28,000. VPBank’s capitalization worth, due to this fact, has misplaced VND53 trillion, or $2.2 billion.
Leaping into the insurance coverage market is a technique that VPBank deliberate way back. And the chance has turn into ripe because the financial institution now has some huge cash after promoting 49 p.c of FE Credit score capital to SMBC of Japan final 12 months.
Established in 2018 (VPBank is the founding shareholder with the possession ratio of 11 p.c), OPES has many purchasers due to strategic cooperation agreements signed with companions belonging to VPBank’s ecosystem similar to YOLO, FECredit and CommCredit.
The financial institution noticed robust progress in income just lately. Nevertheless, the property of the financial institution stay modest and the power to make revenue has turn into slack as FeCredit has many rivals and credit score progress charge is managed.
Below its improvement technique, VPBank plans to increase into different enterprise fields, together with securities providers and insurance coverage.
VPBank has authorised a plan on moreover contributing capital to ASC, a securities firm, VND15 trillion at most. Earlier this 12 months, it introduced the acquisition of greater than 97 p.c of ASC shares and adjusted its title into VPBank Securities.
Previous to that, VPBank succeeded with the acquisition of the finance firm belonging to Vinacoal in 2014.
Many different banks have additionally invested in securities and insurance coverage of their plans to increase enterprise.
TPBank has invested in ORS, VIB has taken over Globalmind Capital, and Kien Lengthy Financial institution has expanded its ecosystem with Vietnam Gate Approach (modified its title into KS Securities).
Many banks have securities firms, together with VietinBank, Vietcombank, MB Financial institution, ACB and Techcombank Securities.
They’ve additionally cooperated with insurers to develop a brand new money-making channel. VietinBank is cooperating with Manulife Vietnam in an settlement on promoting insurance coverage for Manulife for 16 years, whereas ACB has been promoting Solar Life insurance coverage for 15 years since early 2021.
Manh Ha
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