HSBC Insurance buys stake in BaoViet

HSBC Insurance (Asia-Pacific) has signed a deal to buy 10% of Vietnam Insurance Corporation, known as BaoViet, for Vnd4,121 billion ($254 million).

The implied subscription price equates to Vnd71,918 per share, the same price at which BaoViet sold shares in a domestic initial public offering in August 2007.

The allotment to HSBC is part of the Vietnam government's plan - following a similar approach to that already witnessed in China - to sell equity in SOEs to the private sector, via IPOs and strategic stake sales. It will be effected by HSBC buying 57,302,661 shares, ...