GIC hits snag on Vietnam deal approval

It agreed to purchase 7.7% of Bank for Foreign Trade of Vietnam JSC.

Singapore sovereign fund GIC Pte has hit a snag as it seeks government approval for its planned investment in Bank for Foreign Trade of Vietnam JSC, the nation’s biggest lender by market value, people with knowledge of the matter said. The deal, originally expected to be completed by the end of 2016, hasn’t yet been approved by Vietnamese authorities, according to the people. The government has withheld approval in part because GIC proposed to buy stock in Vietcombank at less than the market price, the people said, asking not to be identified because the information is private.

Shares of Vietcombank have risen 36 percent in the past 12 months, giving it a market value of $6.2 billion. The lender trades at about 3 times book value, compared with an average 1.1 times for listed Vietnamese banks, data compiled by Bloomberg show.

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