Japan’s MUFG to acquire 49% stake in VietinBank Leasing

VietinBank Lease, a wholly-owned subsidiary of VietinBank, is a leasing company that has been constantly expanding its market share in Vietnam, supported by VietinBank’s strong brand power and solid customer base.

In tandem with sustained economic growth in Vietnam, its leasing market has also been experiencing constant growth, steady development, and expansion are expected in the future, the statement said.

Through the investment in VietinBank Lease, the MUFG will launch its business in Vietnam and provide excellent financial services to local customers while sharing its extensive expertise and knowledge with VietinBank Lease.

The Japanese financial firm said it has opened offices in ASEAN countries, expanding business while responding to various needs of local customers.

VietinBank's Board of Directors has approved the plan to transfer 49% stake VietinBank Leasing to Mitsubishi UFJ Lease & Finance and transfer 1% stake of the company to a domestic investor.

The VietinBank Leasing Company Limited, which was founded in 1998, has VND1 trillion ($43 million) in charter capital and VND3.03 trillion ($130.8 million) in total assets. After the transaction, Vietinbank holds a 50% stake in the company while MUFG is scheduled to hold 49% and the remaining 1% belongs to minority shareholders.

In 2012, Bank of Tokyo-Mitsubishi UFJ, the core retail and commercial bank arm of Mitsubishi UFJ Financial Group spent $743 million for almost 20% stake in VietinBank.

This transaction was the largest ever M&A transaction in Vietnam’s banking industry at the time. The deal helped to enhance the bank’s financial capabilities and secure the stable long-term fundings for the bank’s development plan, VietinBank said.

During last year's meeting with Prime Minister Nguyen Xuan Phuc, Bank of Tokyo-Mitsubishi UFJ’s CEO Kanetsugu Mike said he wanted to raise holding at Vietinbank to 50% from 19.73%.

- Updated with approval from VietinBank's BOD.