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MUFG unit to buy 20 pct interest in VietinBank - Nikkei
December 12, 2012 / 6:11 PM / 5 years ago

MUFG unit to buy 20 pct interest in VietinBank - Nikkei

Dec 13 (Reuters) - Bank of Tokyo-Mitsubishi UFJ, a unit of Mitsubishi UFJ Financial Group Inc (MUFG), plans to buy a 20 percent interest in VietinBank from the Vietnamese government for about 60 billion yen ($725 million), the Nikkei reported.

VietinBank, or Vietnam Joint Stock Commercial Bank for Industry and Trade, is Vietnam’s second-largest partly private lender.

The bank said on Wednesday its 2012 gross profit may fall 11 percent to 7.5 trillion dong ($360 million) instead of rising 7 percent as earlier forecast.

Bank of Tokyo-Mitsubishi UFJ, the core retail and commercial bank arm of MUFG, hopes to complete the deal in the first half of next year, the Nikkei said.

It may send staff to the board of the bank, which will become an equity-method affiliate, the business daily said.

Bank of Tokyo-Mitsubishi UFJ plans to expand services geared toward Japanese firms in Vietnam, including payments and money transfers, through a partnership with the bank, the Nikkei said.

This deal is part of Tokyo-Mitsubishi UFG’s strategy to form capital partnerships with major banks in Asia, the daily reported. ($1 = 82.9300 Japanese yen) ($1=20,815 dong) (Reporting by Chandni Doulatramani in Bangalore; Editing by Maju Samuel)

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