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VOF becomes major shareholder in Tasco

Released at: 14:10, 08/08/2017

VOF becomes major shareholder in Tasco

Photo: Tasco

VinaCapital Vietnam Opportunity Fund picks up around 10% in toll road operator and real estate developer via private placement.

by Linh San

The VinaCapital Vietnam Opportunity Fund (VOF), (LSE code VOF), VinaCapital’s flagship fund, has announced it has become a significant investor in the Tasco JSC (HNX code HUT), a leading toll road operator and real estate development company in northern Vietnam, via a private placement.

“The private placement gave us the opportunity to acquire a meaningful stake at an attractive price in a company that has a long track record of results and a strong pipeline,” Mr. Andy Ho, Chief Investment Officer at VinaCapital and Managing Director of VOF, said. “This investment is consistent with our philosophy of investing in companies that are focused on the growth of the local economy, and infrastructure improvement is a critical element in Vietnam’s ongoing development.”

Tasco’s private placement raised $23 million by issuing 21 per cent of post-investment common shares to several investors, including company management, with the largest acquirer being VOF, which invested $11 million. Tasco will use proceeds of the private placement to help finance future infrastructure and real estate projects.

Founded in 1971 under the name Nam Ha Bridge, the company later changed its name to Tasco JSC and listed on the Hanoi Stock Exchange (HNX) in 2008. Tasco’s main businesses include infrastructure construction and development and real estate development. Since its inception, Tasco has completed many infrastructure projects under the build-transfer (BT) and build-operate-transfer (BOT) models. The company currently has four toll road projects in operation and expects to bring another into operation this year.

By number of projects owned, Tasco is one of the largest BOT and BT developers in northern Vietnam, with these projects valued at $220 million. Under the BT framework, Tasco can receive land in desirable locations in exchange for the value of the infrastructure it builds, and as a result it has significant holdings in prime locations in and around Hanoi. Revenue reached $124 million and net profit $18 million in 2016.

Founded in 2003, VinaCapital is a leading investment and asset management firm headquartered in Vietnam, with a diversified portfolio of $1.8 billion in assets under management. The firm has three closed-ended funds that trade on the London Stock Exchange: VOF, which trades on the Main Market, and VinaLand Limited and Vietnam Infrastructure Limited, which trade on the AIM. VinaCapital also manages the Forum One - VCG Partners Vietnam Fund, one of Vietnam’s largest open-ended UCITS-compliant funds, numerous segregated accounts, and two domestic funds.

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