VinaLand Limited Divestment of 196HVT and SGPY Projects (4037V)
July 23 2018 - 2:00AM
UK Regulatory
TIDMVNL
RNS Number : 4037V
VinaLand Limited
23 July 2018
23 July 2018
VinaLand Limited (the "Company" or "VNL")
Divestment of 196HVT and SGPY Projects
VinaLand Limited, the AIM-quoted investment
vehicle established to target strategic segments
within Vietnam's emerging real estate market,
announces that it will divest its stakes in
both the 196HVT project and the SGPY project.
The 196HVT site, which is approved for a future
hospitality development, is in Ho Chi Minh
City and The SGPY project is a small operating
hotel located in Phu Yen. Both projects were
acquired by VNL in 2008.
VNL will divest its entire stake in the 196HVT
project at a total valuation of 22.1% above
the 31 March 2018 unaudited net asset value,
and 28.0% below the net asset value at the
time of the 2016 EGM, including adjustments
for additional investments over this period.
This transaction will result in net cash proceeds
of USD2.8 million to VNL. VNL has received
all proceeds at the time of this announcement.
Regarding the SGPY project, VNL has also disposed
of its entire stake in the project which resulted
in net cash proceeds of USD0.3 million to
VNL, equal to both the 31 March 2018 unaudited
net asset value and the net asset value at
the time of the 2016 EGM (including adjustments
for additional investments over this period).
At the time of this announcement, 100% of
the disposal proceeds have been received from
the buyer. Because the acquirer, Crescent
Bay Developments PTE Limited, is wholly owned
by VinaCapital Holdings Ltd, a company controlled
by VinaCapital Group Limited, this transaction
is required to be treated as a related party
transaction under Rule 13 of the AIM Rules
for Companies. The independent directors (Michel
Casselman, Charles Isaac, Ian Lydall and Tran
Trong Kien), however, have consulted with
the Company's nominated adviser and concluded
the terms of this transaction are fair and
reasonable insofar as its shareholders are
concerned.
Following the completion of the disposal of
196HVT and SGPY projects, and in accordance
with paragraph 5.6 of the AIM Note for Investing
Companies (which forms part of the AIM Rules),
the Company has disposed of substantially
all of its assets and now has a period of
12 months from the date of the aforementioned
disposals to begin an orderly wind up of the
fund and cancellation of the Company's shares
from trading on AIM. If this is not fulfilled,
the Company's shares will be suspended from
trading on AIM in July 2019.
Speaking on the transaction, Managing Director
David Blackhall stated, "Both of these disposals
are in accordance with the current strategy
to divest projects in a controlled and orderly
manner and transition the Company to de-list
and wind up over the next 12 months, ultimately
resulting in voluntary liquidation. The proceeds
received from these exits in conjunction with
those collected from past and future disposals
will be used to cover VNL's commitments including
operating costs and distributions to shareholders."
More information on the Company is available
at https://vnl.vinacapital.com.
The information communicated within this announcement
is deemed to constitute inside information
as stipulated under the Market Abuse Regulations
(EU) No. 596/2014. Upon the publication of
this announcement, this inside information
is now considered to be in the public domain.
For enquiries:
Jonathan Viet Luu / Joel Weiden
VinaCapital Investment Management Limited
Investor Relations / Communications
+84 28 3821 9930
jonathan.luu@vinacapital.com / joel.weiden@vinacapital.com
Philip Secrett
Grant Thornton UK LLP, Nominated Adviser
+44 (0)20 7383 5100
philip.j.secrett@uk.gt.com
David Benda / Hugh Jonathan
Numis Securities Limited, Broker
+44 (0)20 7260 1000
funds@numis.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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