Mergers and Acquisitions.Vietnam

Frontiersinsight                                                                                   Vietnam

                            Mizuho to Become Vietcombank Partner


Date: 3 October                                                Industry: Commercial bank
Target: Vietcombank                                          Deal Type: Purchase of stake
Bidder: Mizuho Corporate Bank Ltd.                   Share%: 15%
Seller: -                                                            Deal volue (USD): 567.3 M

Details: 

Mizuho Corporate Bank Ltd. Friday signed an agreement to buy a 15% stake in the Joint Stock Commercial Bank for Foreign Trade of Vietnam, or Vietcombank, for roughly $567.3 million.
Under the deal signed in Hanoi, Mizuho Corporate Bank will buy 347.6 million new shares from Vietcombank for 34,000 dong a share.
The purchase makes Mizuho Corporate Bank the sole foreign strategic shareholder of Vietcombank, Vietnam’s largest listed bank by market capitalization. The Japanese lender is expected to make the payment for the share purchase in the first quarter of next year.
Mizuho Corporate Bank will offer Vietcombank technical assistance, training and business opportunities.”
 
Companies overview:

• Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) is a Vietnam-based financial institution.

The Bank is engaged in the offering of commercial banking services for individual and corporate clients, such as account opening and credit card issuing. It is also involved in international clearing, foreign exchange dealing and money transfer.

Other activities of the Bank include documentary discounting, guarantee, clean collection, financial leasing and securities dealing.

As of December 31, 2010, it was a state-owned bank with three subsidiaries in Vietnam, two subsidiaries overseas, four joint ventures, two affiliates, one representative office in Singapore and 71 branches in Vietnam.

• Mizuho Corporate Bank, Ltd. is a financial institution registered with the Director of Kanto Local Finance Bureau No.6, and a member of Japan Securities Dealers Association, The Financial Futures Association of Japan and Type II Financial Instruments Firms Association.

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ADB president: Mongolia's development shold benefit everyone.Mongolia

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Mongolia has a bright future but needs to continue economic reform and to ensure that the fruits of development are extended to all its people, Haruhiko Kuroda, president of the Asian Development Bank (ADB) said Monday. A delegation led by Mr Kuroda is visiting Mongolia in conjunction with marking the 20th anniversary of the Mongolia-ADB cooperation and the 10th anniversary of the opening of the ADB Permanent Representative in Mongolia.
Mr Kuroda has given a speech at the ADB-Mongolia Partnership forum called "A Roadmap for a Happy, Healthy, and Harmonious Mongolia" in Ulaanbaatar to mark the anniversaries.
Mongolia is at “the threshold of prosperity”, Mr Kuroda said, noting that the Mongolian economy has grown by an average 7 per cent a year since 2003, with the USD 4 billion Oyu tolgoi mining agreement helping improve Mongolia's economic prospects. Per capita gross domestic product has more than tripled to USD 2,200 in 2010 from USD 638 in 2004 and foreign direct investment has soared.
“While high economic growth is desirable, further efforts must be made to make economic growth more inclusive. This means ensuring that the benefits from high economic growth are distributed more broadly, and that people have equal access to opportunities and basic social services,” Mr Kuroda said.
As of 2008, an estimated 35 per cent of the population was still living below the official poverty line. Inequality remains high within cities and between those living in urban areas and those in the countryside.
Mongolia's longer-term future depends on how well it manages its mineral revenues. Mongolia must also promote policy and institutional reform anchored in good governance, and pursue closer integration with the global economy. “This integration will help generate the private sector-led economic growth needed to sustain development,” Mr. Kuroda said. Since Mongolia joined ADB in 1991, ADB has extended 45 loans totaling USD794.7 million to Mongolia, as well as 12 Asian Development Fund grants of just over USD170 million. The ADB also provided technical assistance support amounting to USD86 million and grants under the Japan Fund for Poverty Reduction of USD31.5 million.

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UK firms to invest £2m in Nigeria

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TWO United Kingdom companies, in conjunction with their Nigerian counterpart, have pledged to invest a whooping £2 million to set up a manufacturing firm in the country.
The move, by the firms was part of the outcome of the recent visit by the British Prime Minister, David Cameron, to Nigeria, where he tasked British companies willing to invest in Nigeria, to came on board, because of the stability in investment climate and return on investment.
The British companies Europe-Ex Stock Limited and Multiplex Engineering Limited and Amizo Services Limited, yesterday, agreed to float a jointly owned business known as EES Manufacturing Nigeria Limited in Nigeria.
According to the Director of the EES Manufacturing Nigeria Limited, Graham Evans, the fund would be used to strengthen its market base in the country, adding that plans are afoot to ship in some of its technological equipments in Britain to the country, so as to start manufacturing locally.
He said the company’s target is to supply a wide range of products and onsite services to some core Nigerian companies operating in the manufacturing, power distribution, rail, water utilities, food and drinks, oil and gas sectors.
He added that the company would also undertake projects in construction, maintenance and equipment supply to major companies in the country.
Evans explained that the three companies also have an “efficient, reliable and cost effective proven global freight delivery system.”
The company’s director also stressed that the new company would be engaging in stocking of substantial amount of products, as well as manufacturing, assembling and installing additional products locally for United Kingdom companies.
He said the company has earmarked to supply and stock over 30 other brands and manufacturing some products for some companies in the country.
“When the workshop has finished, we would have already spent about 1.5 million pounds or 2 million pounds. That will take us to at least two years, because some of the very specialised tested equipment for high pressure valves and so on, need a lot of safety implications, so it will take us a lot of time, but quality takes time.
He continued: “We have already had discussions with some of the oil companies and several of our existing food producers in Nigeria. We want to still provide stocking service and service of product onsite, as well as new products to all of their sites scattered around Lagos and Port Harcourt and beyond. So, we are looking forward to start operating soon.”
Mike Purves, director, United Kingdom Trade and Investment said the UK and Nigeria bilateral trade relationship was very significant to his government for a number of reasons, adding that “We have had a long time trade relationship with Nigeria, and we are keen to broaden that in many variety of ways.”
He said the recent visit of David Cameron to Nigeria, would open a vista of opportunities for both countries, pointing out that President Goodluck Ebele Jonathan and David Cameron, signed a communiqué with the mission to doubled Nigeria’s bilateral trade with Britain by 2014.
He said the communique signed was a challenge to the two countries, but what the UK trade and investment was after is to see more British companies coming to establish businesses in Nigeria, because of the high return of investment.

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