SMBC in Advanced Talks to Raise VPBank (VPB) Stake to 20% via Market Purchase

Overview

Reuters reports that Sumitomo Mitsui Banking Corporation (SMBC) is in advanced talks to raise its ownership in Vietnam Prosperity Joint Stock Commercial Bank (VPBank; HOSE: VPB) to about 20%, potentially by purchasing more than 600 million VPB shares directly on the market. The talks, which have run for several months, could reshape the foreign-ownership profile of one of Vietnam’s largest private banks. VPBank and SMBC did not respond to Reuters requests for comment.

Key Facts

• SMBC is discussing lifting its VPBank stake to approximately 20%, according to unnamed sources cited by Reuters.
• The potential transaction involves buying more than 600 million VPB shares on the market, rather than subscribing to a private placement.
• At the 24/9 closing price, the shares earmarked in VPBank’s earlier private-placement plan were worth nearly VND 13,800 billion.
• VPBank’s April 2026 annual general meeting approved issuing more than 624 million shares to a foreign investor whose identity was not disclosed.
• Average daily VPB trading volume year-to-date is about 17.45 million shares, implying roughly 40 sessions to accumulate the full block via order matching.
• Swiss advisory firm Turicum Investment Management estimated in a May report that VPBank could raise USD 700-900 million (VND 18,200-23,400 billion) from the new share sale.
• In the 2023 transaction, SMBC paid a price roughly 40% above the prevailing market price; the current valuation is expected to be significantly above market as well.

What Happened

Reuters reported that SMBC is in deep negotiations to increase its holding in VPBank to around 20%. Two sources said the parties intend to complete the deal this year, but further discussions on valuation are still needed. Importantly, Reuters said SMBC has internally discussed raising its stake by buying shares on the market instead of participating in a private placement.

The valuation is expected to be significantly higher than the market price, mirroring the 2023 deal in which SMBC accepted a price about 40% above market. VPBank’s April 2026 AGM had already approved two capital-raising options, including a plan to issue more than 624 million shares privately to a foreign investor without naming the buyer. Neither VPBank nor SMBC responded to Reuters requests for comment.

Market Context

VPBank trades on the HOSE under the ticker VPB. The stock closed at 22 on 25/9/2026, up 0.90%, on volume of 5,328,400 shares. The reported deal talks come as Vietnamese banks are actively raising capital on international markets to meet strong credit demand, with foreign banks increasing lending to Vietnamese lenders, including VPBank. The broader market backdrop includes FTSE Russell’s upgrade of Vietnam to emerging-market status this week, a move expected to draw foreign capital.

Strategic Significance

For long-term investors, the key question is whether SMBC’s potential move to 20% ownership signals a deeper strategic commitment to VPBank’s retail franchise, including wealth management and credit cards, and to serving Japanese and multinational corporate clients expanding in Vietnam. A market purchase of more than 600 million shares would be a strong vote of confidence, but it would also test the bank’s free float and could pressure the share price if executed via order matching. The valuation gap between the rumored deal price and the market price will determine how much capital VPBank can raise and how dilutive the transaction is for existing shareholders.

What to Watch

• Confirmation from VPBank or SMBC on the stake increase and the chosen execution method (market purchase versus private placement).
• The final valuation and any premium to the market price, compared with the roughly 40% premium in the 2023 deal.
• Progress on the approved private placement of more than 624 million shares and the identity of the foreign investor.
• Foreign-ownership room and any State Bank of Vietnam approvals required for the transaction.
• VPB trading volume and price action around the 22 level as the market digests the potential supply.