Sumitomo Life Insurance Company, Japan’s third largest life insurer, has registered to purchase over 41.4 million shares or a 4.61% stake in Vietnam’s major insurance company Bao Viet, according to a filing to the Ho Chi Minh City Stock Exchange (HoSE).

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The transaction period is scheduled from December 18, 2019 to January 16, 2020. The transactions will be made via private placements.

Prior to the deal, Sumitomo Life remains Bao Viet’s second largest shareholder with 122.5 million shares or a 17.48% stake. In case of completing the deal, the Japanese company would raise its stake in Bao Viet to 22.09%, or 163.94 million shares.

The Ministry of Finance is Bao Viet’s largest shareholder with a 72% stake, and State Capital Investment Corporation (SCIC), the Vietnamese government’s investment arm, ranks third with a 3.16% stake.

Previously, the State Securities Commission of Vietnam, the country’s stock market watchdog, approved Bao Viet’s proposal to offer 41.4 million shares via private placements.

The shares subject to acquisition would not be transferable within one year since the sale, while Bao Viet’s registered capital is set to increase to VND7.42 trillion (US$319.11 million).

Bao Viet had sought permission from its stakeholders to increase the foreign ownership limit to 49% since December 6, 2019.

At the close on December 16, Bao Viet’s shares stood at VND72,700 (US$3.13) apiece, down 23% from the price of VND87,800 (US$3.77) in early 2019, while its market capitalization is estimated at VND50.95 trillion (US$2.19 billion).