hsbc-insurance-buys-stake-in-baoviet

HSBC Insurance buys stake in BaoViet

HSBC pays $254 million for 10% of Vietnam's leading insurance firm, with an option to increase its stake to 25% over five years.
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, representing 10% of the share capital, in a new joint stock company, BaoViet Holdings....
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