Transactions at ACB. The bank plans to spend $31.6-47.6 million to buy back shares. ― Photo dantri.com.vn

HA NOI (Biz Hub) ― Asia Commercial Bank (ACB) said it planned to buy back about 55.4 million shares, equivalent to nearly 6 per cent of the bank's total shares currently in circulation, within a month beginning June 5.

Funds for the buy-back would be sourced from undistributed after-tax profits to repurchase the shares at market prices, expected at around VND12,000-19,000 (US$0.6-0.9) per share. The reacquisition would cost between VND664 billion to VND1 trillion ($31.6 million to $47.6 million).

ACB deputy general director Nguyen Thanh Toai told VnExpress online that it was a suitable time for the move as the shares would prove profitable in the future.

"The buy-back would also in theory push up market prices of the shares," he said. "But it's hard to predict developments in the Vietnamese stock market."

At an ACB annual shareholder meeting late last month, the bank was reported to have nearly VND634 billion ($30.2 million) worth of undistributed profits. It also plans to redirect VND663 billion ($31.6 million) from an equity supplement reserve fund into undistributed profits, as the bank has no plans to increase its capital. ― VNS