Sumitomo Mitsui Banking Corp. is in advanced talks to raise its stake in Vietnam's VPBank to about 20%, according to Reuters. The Japanese lender, the banking arm of Sumitomo Mitsui Financial Group, currently holds 15% of VPBank after paying $1.5 billion for that stake in 2023. The two sides aim to close the deal this year but remain divided over valuation, with VPBank seeking a substantial premium to its share price, and SMBC reluctant to match the roughly 40% premium it paid in 2023. SMBC has considered buying the additional shares in the open market rather than through a private placement; at current prices a 5% stake would be worth about $425 million. VPBank is separately discussing a share sale to foreign investors that could raise $700 million to $900 million.
Sumitomo Mitsui Financial Group, Inc.SMBC is in advanced talks to raise its VPBank stake to about 20%, expanding its investment in Vietnam's VPBank.
Yulon Finance Corp
