17 May 2017 17:42
17 May 2017VinaLand Limited (the "Company" or "VNL")
Notice of Tender Offer to Shareholders and Divestment of the stake in the Times Square project
Ho Chi Minh City - VinaLand Limited, the AIM-quoted investment vehicle established to target strategic segments within Vietnam's emerging real estate market, announces that it will conduct a distribution of USD40 million to shareholders through a tender offer to purchase ordinary shares of US$0.01 each ("Ordinary Shares") in the Company (the "Tender Offer"). The Tender Offer is offered to all shareholders on the register on 26 May 2017 (the "Tender Offer Record Date") at a fixed price which will be set at a 15% discount to the NAV per share on 25 May 2017 (the "Pricing Date"). Shareholders can elect to accept or decline participation in the Tender Offer. To the extent that not all shareholders elect to participate in the Tender Offer then the Company will be able to acquire from those tendering shareholders additional Ordinary Shares above their individual allocations. Such surplus tenders will be accepted on a pro rata basis as calculated by the Company provided that the maximum value of Ordinary Shares repurchased does not exceed $40 million. The timetable for the Tender Offer is as follows:
2017 | |
Pricing Date | Thursday 25 May |
Tender Offer Record Date | 6.00 p.m. (UK time) on Friday 26 May |
Latest time and date for receipt of Election Forms | 5.00 p.m. (Singapore time) on Friday 23 June |
Results of the Tender Offer announced | Monday 26 June |
Settlement Date for the Tender Offer | Friday 30 June |
Further information on the Tender is available in the Tender Circular and Tender Form which have been sent to shareholders and which are available on the Company's website at http://vnl-fund.com.
The share buyback will be placed on hold from the date of this announcement until the completion of the tender offer process.
Furthermore, the Company is divesting its entire stake in the Times Square project, located in Hanoi, Vietnam (the "Project"). The Project consists of a total land area of approximately 4.0ha and was acquired by VNL in 2007, at which time the land was designated as a future development site. VNL is divesting its entire stake in the Project to Elite Capital Resources Limited for net cash proceeds of approximately USD41.0 million, resulting in an IRR of 5.3% to the Company. The total valuation is 20.4% above the 31 March 2016 un-audited net asset value and 48.1% above the unaudited net asset value at the time of VNL's extraordinary meeting in November 2016, both figures include adjustments for additional investments up to the date of exit. At the time of this announcement, USD17.0 million or 41.5% of the net proceeds have been received by the Company with the remaining proceeds subject to completion of conditions precedent expected to be completed by no later than July 2017.
Speaking on the transaction, Managing Director David Blackhall stated, "This tender offer follows the announcement today of the Times Square disposal which in conjunction with several other exits will enable shareholder distributions to continue in various forms, including share buybacks and tenders, and is a good outcome for shareholders as we continue to maximize shareholder value."
More information on the Company is available at www.vnl-fund.com.