4 Aug 2016 10:17
4 August 2016
Vietnam Infrastructure Limited ('the Company' or 'VNI')
Agreement to sell holding in Southeast Asia Telecommunications Holdings
Ho Chi Minh City, Vietnam - Vietnam Infrastructure Limited, the AIM-quoted investment vehicle established to target infrastructure and related investments within Vietnam's emerging market, has signed a share sale and purchase agreement to transfer 100% of its holding in Southeast Asia Telecommunications Holdings Pte. Ltd. (SEATH) to OCK Vietnam Towers Pte. Ltd. This transaction will result in net cash proceeds of USD50 million to VNI, which will be settled completely in cash and taken together with the equity cost of the carved-out in-building systems (IBS) portfolio, represents a loss of USD0.3 million compared to the audited NAV attributable to the telecom portfolio of USD58.4 million as at 31 December 2015. The completion of the transaction is subject to receipt of the sale proceeds and other conditions precedent. The sale proceeds are expected to be received at the end of October 2016.
SEATH holds 100% of VNC-55 Infrastructure JSC, Mobile Information Service JSC and Global Infrastructure Investment JSC, which own and lease 1,938 mobile phone base stations (BTS) and over 150 IBS to mobile network operators in Vietnam. OCK Vietnam Towers will acquire the entire BTS business while VNI will separate the IBS portfolio from SEATH and divest at a later stage. This divestment is in line with VNI's strategy to divest all assets by June 2017, and the proceeds from the transaction will be used to make capital distributions to shareholders.
VNI Managing Director Tony Hsun commented, "This transaction represents significant progress toward completing our divestment strategy. Upon closure of this transaction, VNI will be left with only one remaining asset to be divested, the IBS portion of SEATH."
Enquiries:Jeremy Greenberg
VinaCapital Investment Management Limited
Investor Relations
+84 8 3821 9930
jeremy.greenberg@vinacapital.com
Joel Weiden
VinaCapital Investment Management Limited
Communications
+84 8 3821 9930
joel.weiden@vinacapital.com
Philip Secrett
Grant Thornton UK LLP, Nominated Adviser
+44 (0)20 7383 5100
philip.j.secrett@uk.gt.com
David Benda / Hugh Jonathan
Numis Securities Limited, Broker
+44 (0)20 7260 1000
funds@numis.com
Daniel Jason
Peregrine Communications, Public Relations (London)
+44 (0) 20 3040 0872
daniel.jason@peregrinecommunications.com