9 Oct 2008 11:11
09 October 2008
Vietnam Infrastructure Limited
VNI now Vietnam's largest BTS telecom tower investor
Vietnam Infrastructure Limited (the "Company" or "VNI"), the first publicly traded fund to focus on infrastructure and infrastructure-related assets in Vietnam, is pleased to announce that it has formed a new joint venture in the area of telecommunications infrastructure.
The joint venture, VNC-55 Infrastructure Investment Joint Stock Company (VNC-55), will specialise in building and leasing Base Transceiver Station (BTS) towers to mobile service operators. With this investment, the Company has consolidated its position as Vietnam's largest investor in mobile telecommunications infrastructure.
The company will hold a 40 percent stake in VNC-55 for an initial investment of USD6 million. VNC-55 expects to see an average five-year revenue growth of 37 percent.
Vietnam is experiencing rapid growth in wireless networks as the country develops its economy and incomes rise. The mobile phone penetration rate in 2007 stood at 41 percent of the country's 84 million population. This compares to penetration rates that surpass 80 percent in neighbours Thailand and Malaysia and exceed 100 percent in Singapore and Hong Kong. Vietnam's mobile phone penetration is expected to surpass the 100 percent penetration threshold in 2011.
In this high-growth environment, the Company has elected to focus on the backbone investment in the spread of mobile networks - BTS towers. The three major mobile phone operators in Vietnam are expected to require about 7,000 new BTS towers in the next two years. The fastest areas of growth are in rural areas and secondary cities outside of Hanoi and Ho Chi Minh City.
The Company's local partner for VNC-55 is the Commercial Construction and Services Company no. 55 (CSCC-55), based in Danang, Vietnam's fastest growing city.
CCSC-55 owns the largest operating asset base of BTS towers among non-state-owned companies in Vietnam. Under the joint venture, CSCC-55 will transfer the whole of its BTS tower business to VNC-55. By the end of 2008, VNC-55 will have over 600 BTS under its management and expects to complete 1,000 BTS yearly for the next several years.
The Company's previous investments in the BTS sector include stakes in Global Infrastructure Investment Ltd (GII), Mobile Infrastructure Development Company (MIDC), and Mobile Information Services (MIS). Together with VNC-55, the Company is now invested in about 800 existing BTS, with contracts for construction of over 2,100 towers, almost all of which will be built by the end of 2008.
Commenting on the investment, VNI's fund manager William Lean said: "The VNC-55 joint venture affirms our position as the leading investor in BTS towers in Vietnam. As Vietnam's mobile sector will open for international competitors shortly, we expect to see even faster growth in penetration rates and mobile use across Vietnam. The proposed issuance of 3G licences in 2009 will also require an increase in BTS density which will be beneficial for our telecom tower business."
More about VinaCapital Group:
VinaCapital is the leading asset management and financial services group in Vietnam. The Group combines its deep market experience and networks to generate strategic investment and financing products, alongside merger and acquisition activities. VinaCapital manages total assets valued at over USD1.8 billion under its four funds (NAV figures as at 31 August 2008):
Vietnam Opportunity Fund (VOF) is a USD770 million diversified investment fund that has consistently been among the top performing Vietnam funds.
VinaLand Limited (VNL) is a USD790 million real estate fund established in March 2006.
Vietnam Infrastructure Limited (VNI) is a USD338 million fund established in July 2007 as the first fund to invest solely in Vietnam's infrastructure sector.
DFJ VinaCapital L.P., a USD32 million technology venture capital fund.
VinaCapital also has a dominant stake in VinaSecurities JSC, a brokerage firm. VinaCapital currently employs over 180 investment personnel in its offices in Ho Chi Minh City, Hanoi, Danang, Nha Trang and Hong Kong. More information on the Group can be found at www.vinacapital.com.
Details on Vietnam Infrastructure Limited are available directly at www.vietnam-infrastructure-fund.com.
For more information please contact:
| Ms Chi Nguyen VinaCapital Investment Management Limited Investor Relations | +84 8 821 9930 chi.nguyen@vinacapital.com |
| Philip Secrett Grant Thornton UK LLP Nominated Adviser | +44 20 7383 5100 philip.j.secrett@gtuk.com |
| Hiroshi Funaki LCF Edmond de Rothschild Securities | +44 20 7845 5960 funds@lcfr.co.uk |
| David Cranmer Financial Dynamics | +44 20 7831 3113 david.cranmer@fd.com |