10th Mar 2023 14:38
(Alliance News) - VinaCapital Vietnam Opportunity Fund Ltd on Friday said the change in its daily net asset value, announced on Monday, was due to the revaluation of certain investments.
The fund of investment manager VinaCapital, investing in listed, private equity state-owned enterprise assets in Vietnam said the decrease of USD25.8 million, representing 2.6% of NAV, was predominantly due to value adjustments relating to the NovaGroup Joint Stock Company.
The company said that on December 30, a default occurred on two of VinaCapital's "public equities with private terms" portfolio relating to Novaland, of which NovaGroup is the holding company.
As a result of the default, the instruments have been revalued at USD38.6 million at December 31, down 34% from USD58.5 million at June 30.
VinaCapital added that the Nova Consumer Group, a separate company in the Nova Group in which VinaCapital holds a USD24.8 million interest, worth USD25.2 million at June 30, was expected to list on the Ho Chi Minh Stock Exchange by January 1 2023, but due to adverse market conditions, it has been unable to do so.
Consequently, the company's investment manager exercised the put option agreed at the time o investment, but NCG was also unable to honour this obligation. VinaCapital, therefore, has placed a USD7.9 million provision against its investment in NCG, which has reduced the valuation of its investment to USD17.8 million.
VinaCapital shares fell 0.7% to 436.50 pence each in London on Friday afternoon.
By Harvey Dorset, Alliance News reporter
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