Sumitomo Life spends $173 mln for additional 5.91% stake at insurer Bao Viet

The deal was closed on Wednesday, when Sumitomo Life agreed to buy 41.4 million BVH shares at VND96,817 ($4.21) each.

The deal has made Sumitomo Life the second largest shareholder of Bao Viet, with nearly 164 million shares. The registered capital of Bao Viet has increased to $319.1 million from issuing the additional shares to foreign investors.

The Vietnamese insurer said the inflow capital will help strengthening its financial capacity, and serving its business strategy in the coming time.

“The deal shows Sumitomo Life’s confidence in cooperation with Bao Viet,” said Do Truong Minh, General Director of Bao Viet Group.

In 2012, Sumitomo Life spent $340 million for more than 122,5 million BVH shares from HSBC Insurance, the founding shareholder of Bao Viet Group.

Sumitomo Life wants to raise stake at the insurer since it sees Vietnam a potential market for life insurance business thanks to bright economic growth.

Currently, Bao Viet’s largest shareholder is Ministry of Finance, with 72% stake while State Capital Investment Corporation, Vietnamese government’s investment arm, is third largest shareholder, with 3.16% stake.

► Japanese insurer targets larger stake in Vietnam's Bao Viet Holdings

Source: Bao Viet