18 Jul 2014 07:00
RNS Reach
18 July 2014
VinaLand Limited
Divestment of holdings in hospitality investments including the Movenpick Hanoi Hotel
Ho Chi Minh City - VinaLand Limited ("the Company" or "VNL"), the AIM-quoted investment vehicle established to target strategic segments within Vietnam's emerging real estate market, announces that it has divested its holdings in several hospitality investments across Vietnam, these holdings being in smaller operating hotels, and the Movenpick Hanoi Hotel.
In 2011 the Investment Manager undertook to reduce its exposure in the hospitality sector in Vietnam, in particular where little or no asset value growth was likely and also where future additional funding from the Company was forecast. Subsequently the Investment Manager concluded that VNL should divest those holdings which would result not only in positive outcomes but also avoid further funding being required from the Company to cover future debt obligations.
VNL has divested 100.0 percent of its holdings in these hospitality investments for a consideration of 5 percent above the unaudited 31 March 2014 net asset value. This transaction will result in estimated net proceeds of USD19.9 million for the Company.
Speaking on the transaction, Managing Director, David Blackhall stated, "The closure of this transaction is consistent with the Company strategy agreed at the EGM in November 2012 where shareholders supported a new three year term which included a revised strategy focused on realisation of assets. The proceeds will be deployed to cover the continuation of the share buyback programme and operating costs."
Enquiries:
David DropseyVinaCapital Investment Management LimitedInvestor Relations/Communications+84 8 3821 9930david.dropsey@vinacapital.com
Philip Secrett
Grant Thornton UK LLP, Nominated Adviser
+44 (0)20 7583 5100
philip.j.secrett@uk.gt.com
Hiroshi FunakiEdmond de Rothschild Securities, Broker+44 20 7845 5960funds@lcfr.co.uk
David Benda / Hugh JonathanNumis Securities Limited, Broker
+44 (0)20 7260 1000
funds@numis.com
Andrew WaltonFTI Consulting, Public Relations (London)+44 (0)20 7269 7204andrew.walton@fticonsulting.com