15th Nov 2016 09:42
LONDON (Alliance News) - VinaCapital Vietnam Opportunity Fund Ltd on Tuesday said it has signed a letter of understanding to sell its stake in one of its assets for a minimum of USD100.0 million.
VinaCapital Vietnam said the letter of understanding was signed by its subsidiary, with the stake to be sold to a "newly formed consortium".
VinaCapital Vietnam noted that, as of June 30, the net asset value of the asset was USD60.0 million, but did not provide any further detail regarding the asset.
VinaCapital Vietnam said it expects to sign and close a share purchase agreement within 21 days, with minimum net proceeds of USD100.0 million expected from the sale. Around USD37.0 million of this will be payable upon the signing and closing of the agreement and the balance payable in two installments.
"Given the complexity of the divestment, [VinaCapital Vietnam manager] VinaCapital Group and Don Lam, the CEO and a shareholder of VinaCapital Group, will continue to be involved in the oversight of the asset, and are expected to participate with a non-controlling interest in the consortium," VinaCapital Vietnam said.
VinaCapital Vietnam have considered and approved the sale of the asset to the consortium, the company said.
"We are delighted to have reached this agreement and we look forward to redeploying the proceeds into the many new opportunities in this market as well as toward our ongoing share buyback programme," said Managing Director Andy Ho.
Shares in VinaCapital Vietnam were up 4.9% at 247.50 pence on Tuesday morning.
By Hannah Boland; [email protected]; @Hannaheboland
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
VinaCapital Vietnam Opportunity Fund