Vietnam Infrastructure Regulatory News (VNI)

14 Mar 2008 12:14

Vietnam Infrastructure Limited14 March 2008 VIETNAM INFRASTRUCTURE LIMITED Vietnam Infrastructure Limited Announces Investment in PHA LAI THERMAL POWER JOINT STOCK COMPANY (PPC) Vietnam Infrastructure Limited (the "Company" or "VNI"), the AIM-quotedinvestment vehicle established to invest in Vietnam's rapidly growinginfrastructure sector and the first publicly traded fund to focus investment onkey strategic infrastructure and infrastructure-related assets in Vietnam, ispleased to announce that it has acquired an interest in Pha Lai Thermal PowerJoint Stock Company ("PPC") over a 8-month period. As at 10 March 2008, VNI hasaccumulated about 10,595,337 shares of PPC, which is listed on the Ho Chi MinhCity Securities Trading Center. The total consideration for the investment ofUSD 38.2 million has been satisfied in cash. As at 10 March 2008, the market capitalization of PPC was US$958.3mn. PPC is a Vietnam-based company engaged in the energy sector. The companyprimarily generates electricity derived from thermal (coal) power sources. Thesupply of coal is from a mine which is several kilometres away from the powerplant. Total electricity production is sold to Electricity of VietnamCorporation (EVN) and transmitted to the national power grid. PPC isheadquartered in Hai Duong Province, and the company is a subsidiary of EVN. Thecompany reported net profit after tax (NPAT) of USD 51.7 Million, for thefinancial year ended 31 December 2007. PPC has a total capacity of 1,040MW and Pha Lai Company is currently the thirdbiggest electricity company in Vietnam, supplying one-fourth of the power outputin northern Vietnam and one-tenth nationally. The Board of PPC has also approved further investments in power plant projectsas follows; a) 20 per cent equity in Stock Thermal Power No.1 Company which ownsthe 1,200MW Mong Duong No.1 Coal Thermal Power Plant, b) 20 per cent equity inStock Thermal Power Nghi Son which owns the 1,200MW Nghi Son No.1 Coal ThermalPower Plant, and c) 31 per cent equity investment in the 2,000MW Hai Phong No.3Coal Thermal Power Plant. These projects are currently under development. PPCintends to list on the Singapore Stock Market this year. Commenting, Don Lam, Chairman of Vietnam Infrastructure Fund, said: "PPC is an established market leader in power generation with the potential todouble its generating capacity. This is especially relevant in the Vietnammarket which is facing power outages today. It is an excellent fit with ourinvestment criteria demonstrating exciting growth potential". Enquiries: Ms Chi Nguyen +84 8 821 9930 VinaCapital Investment Management Limited chi.nguyen@vinacapital.comInvestor Relations Philip Secrett +44 20 7383 5100 philip.j.secrett@gtuk.comGrant Thornton Corporate Finance, Nominated Adviser Hiroshi Funaki +44 20 7845 5960LCF Edmond de Rothschild Securities funds@lcfr.co.uk David Cranmer +44 20 7831 3113Financial Dynamics david.cranmer@fd.com About Vietnam Infrastructure Limited Vietnam Infrastructure Limited (AIM: VNI) is a US$402 million, closed-endinfrastructure and infrastructure-related investment company admitted to tradingon the AIM market of the London Stock Exchange in July 2007. The company focuseson key strategic sectors within Vietnam's emerging infrastructure market, namelyenergy, transport, telecommunications and water utilities. VietnamInfrastructure Limited is managed by VinaCapital Investment Management Limited("VinaCapital"), a fund management and advisory business operating out ofoffices in Ho Chi Minh City, Hanoi and Danang. This information is provided by RNS The company news service from the London Stock Exchange