20:39 (GMT +7) - Monday 25/09/2017

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VinaLand makes tender offer and divests from Vina Square

Released at: 10:41, 11/09/2017

VinaLand makes tender offer and divests from Vina Square

Vina Square project (Source: toquoc.vn)

Divestment to Tri Duc Real Estate Company to bring net cash proceeds of approximately $41.2 million.

by Linh San

VinaLand Limited, the AIM-quoted investment vehicle established to target strategic segments within Vietnam’s emerging real estate market, has announced it will conduct a distribution of up to $60 million to shareholders through a tender offer to purchase ordinary shares in the company for $0.01 each.

The offer is for all shareholders on the register at 6pm UK time on September 15, at a fixed price of $0.83 per ordinary share. Shareholders can either elect to accept or decline participation in the tender offer. Consequently, the company intends to repurchase, in aggregate, such number of ordinary shares at the tender price as is equal to $60 million.

Accordingly, if shareholders in aggregate tender ordinary shares more than the tender value cap, elections will be scaled back to the tender value cap. To the extent that not all shareholders elect to participate in the tender offer, the company will be able to acquire from tendering shareholders additional ordinary shares up to the tender value cap.

All ordinary shares repurchased by the company pursuant to the tender offer will be cancelled.

Furthermore, the company has announced that it is divesting its stake in the Vina Square project, located in Ho Chi Minh City. The project consists of a total land area of approximately 3 ha and was acquired by VinaLand in 2007, at which time the land was designated as a future development site. VinaLand is divesting its entire stake in the project to Vietnam’s Tri Duc Real Estate Company for net cash proceeds of approximately $41.2 million, which includes the repayment of shareholder loans, resulting in an IRR of 3.3 per cent to the company. The total valuation is recorded at 0.3 per cent above the June 30, 2017 unaudited net asset value and 13.5 per cent above the unaudited net asset value at the time of VinaLand’s extra-ordinary meeting in November 2016. Both figures include adjustments for additional investments up to the date of exit. At the time of the announcement, $41 million, or 99.5 per cent, of the net proceeds have been received by the company. It is expected that all proceeds will be received by the company by the end of this month. 

“This tender offer follows the announcement of the Vina Square disposal, for which all proceeds will be received in September, enabling further distributions to shareholders during October 2017,” said Managing Director Mr. David Blackhall. “This divestment is in accordance with the current stated policy to divest projects in a controlled and orderly manner, and steady progress has been made with further pipeline disposals. The proceeds received from this disposal will, in conjunction with collections from earlier disposals including prepayment advances for future pipeline disposals, be used to cover VinaLand’s commitments, including operating costs, capital contributions, and further distributions to shareholders.”

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