SMBC in Talks to Buy 5% More of VPBank (VPB), Eyeing 20% Stake

Overview

Reuters reported on 25/9 that Sumitomo Mitsui Banking Corporation (SMBC) is negotiating to acquire an additional 5% of VPBank (HOSE: VPB), which would raise its holding to 20%. The two sides have not agreed on valuation, and SMBC is weighing whether to buy on-market rather than through a private placement. VPB shares closed up more than 4% at 23,000 VND on the report.

Key Facts

• SMBC is in talks to buy an additional 5% of VPBank, targeting a 20% total stake, per Reuters on 25/9.
• The two sides remain in disagreement over valuation after several months of negotiations.
• SMBC aims to complete the transaction within the year, according to the report.
• In 2023, SMBC paid roughly USD 1.5 billion for 15% of VPBank, a premium of about 40% to the then-market price.
• SMBC is reportedly discussing buying VPB shares via on-market matching orders instead of a private issuance.
• VPB closed 25/9 at 23,000 VND, up more than 4%, with volume above 44 million shares; the stock touched its ceiling intraday.
• VPBank’s market capitalization has risen more than 12% over the past six months.
• VPBank reported H1 consolidated pre-tax profit of nearly VND 18,900 billion, up 68% year-on-year, meeting about 46% of its full-year plan.

What Happened

Reuters reported that SMBC, the banking arm of Sumitomo Mitsui Financial Group (SMFG), has been in talks for several months to raise its stake in VPBank to 20%. SMBC wants to close the deal this year, but the two parties have not settled on a price. VPBank is seeking a price above the current market level, while the Japanese lender is not accepting the same premium it paid in 2023, when it acquired 15% of the Vietnamese bank for about USD 1.5 billion, roughly 40% above the market price at the time.

According to the report, SMBC is internally discussing the option of increasing its holding through on-market purchases rather than a private placement. Both VPBank and SMBC declined to comment. The article did not disclose a proposed transaction value for the additional 5% stake, and no binding agreement has been announced.

Market Context

VPBank trades on the HOSE under the ticker VPB. The stock closed at 23,000 VND on 25/9, up more than 4% on the day, with volume exceeding 44 million shares and an intraday move to the ceiling limit. The shares have added more than 12% in market capitalization over the past six months. The move comes as Vietnamese bank stocks remain sensitive to foreign strategic-investor news and to the sector’s earnings recovery, with VPBank’s H1 pre-tax profit up 68% year-on-year.

Strategic Significance

For long-term investors, the key question is whether SMBC converts its existing 15% financial stake into a deeper strategic commitment at 20%. SMBC already holds 49% of FE Credit, VPBank’s consumer-finance subsidiary, so a higher parent-level stake would consolidate its exposure to Vietnamese retail and SME lending. The valuation gap is the central tension: VPBank’s 2023 deal priced a 40% premium, and management is seeking a similar uplift, while SMBC’s willingness to buy on-market signals it will not repeat that premium. A successful deal would also test how much room Vietnam’s foreign-ownership framework gives to a single strategic investor in a major private bank.

What to Watch

• Any confirmation from VPBank or SMBC on deal terms, pricing, or structure.
• Whether SMBC proceeds via on-market purchases, which would appear in foreign-ownership and block-trade disclosures.
• VPBank’s Q3 2025 earnings release and progress against its full-year profit plan.
• State Bank of Vietnam guidance on foreign strategic ownership limits in domestic banks.
• Further Reuters or company filings clarifying the valuation gap and deal timeline.