Logo of Phnom Penh Post newspaper Phnom Penh Post - NGO affiliate to buy ACLEDA’s CSX shares

NGO affiliate to buy ACLEDA’s CSX shares

Content image - Phnom Penh Post
ACLEDA Bank’s (ABC) shares rose 1,200 riel ($0.30) or 9.92 per cent to close at 13,300 riel on February 9, with 38,051 shares traded worth 506.08 million riel. ACLEDA

NGO affiliate to buy ACLEDA’s CSX shares

NGO ACLEDA Financial Trust (AFT) has entered into an agreement with its local public listed parent company ACLEDA Bank Plc (ABC) on a five-year strategic plan to buy shares of the bank on Cambodia Securities Exchange (CSX) from 2022-2026, in a move to stabilise the floating share of the lender on the bourse, according to ABC.

ABC issued a notification to the CSX on February 4 informing all stakeholders of the decision, commenting that it was made by AFT’s board of trustees and regulators.

ABC senior executive vice-president Mar Amara affirmed to The Post on February 9 that AFT would invest in the bank, by purchasing its shares on the CSX based on the five-year plan.

“By and large, we believe and expect that this will contribute to more active participation of investors in the CSX, growing liquidity in the market, and accelerated development of the securities market in Cambodia,”she said.

CSX Market Operations Department director Kim Sophanita noted that AFT is currently the largest shareholder of ABC.

“AFT’s investment plan shows that it has confidence in long-term investment with ACLEDA Bank.

“Moreover, I believe that this plan will help to correct the current market price and adjust the current mismatch of supply and demand of ABC shares in the market as well as to regain trust from investors who fear a continued price drop due to the upcoming release of the remaining shares held by ACLEDA staff under the ASA entity [ASA Plc].

“However to show their commitment and gain trust from public investors in its plan, AFT should make public the details of their investment plans, including specific purposes, target buy price ranges, a more detailed timeline, sources of funds, and so on,” she said.

ABC shares rose 1,200 riel ($0.30) or 9.92 per cent to close at 13,300 riel on February 9, with 38,051 shares traded worth 506.08 million riel. On Friday, February 4, shares had remained flat at 10,300 riel, with 16,947 shares traded valued at 174.62 million riel.

MOST VIEWED

  • ‘Education’ a priority traffic-law penalty

    A top National Police official on June 21 neither rejected nor confirmed the authenticity of a leaked audio message, which has gone viral on social media, on a waiver of fines for a number of road traffic-related offences. General Him Yan, deputy National Police chief in

  • Pursat Ford assembly plant opens

    The Kingdom’s first Ford assembly plant was inaugurated on June 16 in Pursat province amid rising demand for brand-new vehicles among Cambodians. The facility is seen as a game changer for the domestic automobile industry, which could bring a wave of investors seeking to cash

  • Siem Reap’s $18M zoo said to educate public, help wildlife

    Angkor Wildlife and Aquarium Co Ltd has invested $18 million in a zoo in Siem Reap province, which will be opened in October to educate and promote animal conservation as well as attract national and international tourists. Currently, the Angkor Wildlife and Aquarium is building the

  • Angkor photo rules clarified

    The Apsara National Authority (ANA) denied that it had banned the use of camera tripods in the Angkor Archaeological Park, explaining that the confusion stemmed from a long-standing rule which required commercial photographers and videographers to apply for permission to film. The explanation followed a

  • $50B infrastructure plan en route

    The government’s upcoming $50 billion,10-year infrastructure master plan will provide tremendous investment opportunities for domestic and foreign entities, transport experts and economists say. Minister of Public Works and Transport Sun Chanthol revealed the plan to Japanese ambassador to Cambodia Masahiro Mikami on June 15. At

  • Volunteer scheme to foster ‘virtuous’ humanitarian spirit

    A senior education official said volunteer work contributes to solidarity and promotes a virtuous humanitarian spirit among the youth and communities. Serei Chumneas, undersecretary of state at the Ministry of Education, Youth and Sport, made the comment during the opening of a training programme called “