VPBank Sells off 15% Stake to Japan’s SMFG in US$1.5 Billion Dealby Fintech News Vietnam March 28, 2023
Japan’s Sumitomo Mitsui Financial Group (SMFG) has inked a deal to acquire a 15% equity stake in Vietnam Prosperity Joint-Stock Commercial Bank (VPBank) for approximately US$1.5 billion. The deal is set to be finalised by the end of 2023.
The acquisition was made through SMFG’s subsidiary Sumitomo Mitsui Banking Corporation (SMBC) through a private placement and is subject to regulatory approval.
Through this acquisition, VPBank will become an equity method affiliate of SMFG and SMBC.
As one of the largest private banks in Vietnam with over 250 branches throughout the country, VPBank has a strong presence in the retail and SME sectors and has been focusing on digitalising its products and services.
The Japanese financial giant said in a statement that it has been pursuing its multi-franchise strategy to capture the growth of key emerging markets in Asia and views Vietnam as one of its important markets.
Following an existing partnership formed last year, SMBC and VPBank have been collaborating on multiple fronts. This includes the referrals of SMBC’s Japanese customers to VPBank and providing the Vietnamese bank’s products and services to them.
“By entering a capital partnership with VPBank through this investment, we will further strengthen business collaborations which will enable SMBC to provide higher quality products and services to our customers growing their businesses in Vietnam.
Through the investment, SMBC will leverage VPBank’s nationwide branch network and expand business collaborations in various fields, including retail and SME financial services, which will enable SMBC Group to further strengthen our growth strategy in Vietnam and ultimately contribute to the further development of Vietnam’s financial industry.”