25 Jul 2014 13:45
RNS Reach
25 July 2014
VinaLand Limited
Divestment of stake in Marie Curie Project
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 stake in the company that owns the Marie Curie project located in District 3, Ho Chi Minh City.
The Marie Curie project was a site with a total area of 3,386 square metres which was acquired by VNL in 2008 for development into a mixed use complex. Given current market conditions and the Company's ongoing divestment strategy, the Investment Manager concluded that VNL should no longer proceed with the development of this site, but rather seek to divest the asset.
VNL has signed an agreement to divest its entire stake (64.5 percent) in the project, at a valuation 14.3 percent above the unaudited 31 March 2014 net asset value of the investment and 24.6 percent above the net asset value at the time of VNL's extraordinary meeting (EGM) in November 2012. This transaction will result in net proceeds of USD10.9 million for the Company. With approximately 90.0 percent of the proceeds received, the transaction is forecast to finalise in August 2014.
Speaking on the transaction, Managing Director, David Blackhall stated, "The closure of this transaction is consistent with the Company's strategy agreed at the EGM in November 2012 where shareholders supported a new three-year term which included a revised strategy focused on the 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 Funaki / Andrew DaviesEdmond 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