Aseana Properties Limited Update on the impact of the Covid-19 virus (1152H)

TIDMASPL

RNS Number : 1152H

Aseana Properties Limited

23 March 2020

Aseana Properties Limited

("Aseana" or the "Company")

23 March 2020

Update on the impact of the Covid-19 virus

Aseana Properties Limited (LSE: ASPL LN), a property developer in both Malaysia and Vietnam which is listed on the Main Market of the London Stock Exchange, announces the following update on the impact of the Covid-19 virus on the Company.

The Board of Directors of Aseana has been closely following events related to the Covid 19 virus and has been actively planning how to mitigate the impact of it as much as possible. We have been very mindful of safeguarding our operational staff in both Malaysia and Vietnam where our property assets are located and have acted whenever there has been clear guidance from the relevant authorities. As a result, our corporate management offices in Kuala Lumpur have been closed and we are in the process of closing our hotels in both Kuala Lumpur and Sandakan in East Malaysia, a process which is pending the finalisation of travel arrangements for the few remaining guests, but which should be complete by the end of March. Our shopping mall in Sandakan is still partially open but the town is the subject of a restricted movement order and only certain businesses such as supermarkets are still permitted to operate. At the present time there are no closure requirements in Vietnam. Business levels at our hotels have been affected by these closures and in addition our hospital in Vietnam is experiencing low levels of patients as people avoid medical facilities, fearing that they could come into contact with the virus at them.

We have already initiated a number of cost-cutting initiatives to reflect the reduced business levels that we are experiencing and continue to explore further cuts in order to reduce our cash outflows and preserve our cash balances. In addition, the Directors have volunteered to reduce their fees by 25% for the next six months.

Unfortunately progress on our asset sales discussions has also slowed considerably as business conditions have worsened throughout Asia and because due diligence by prospective buyers has been hampered by travel restrictions. We are working to preserve these discussions with a view to ramping them up again when the virus crisis eases.

Your Board will keep you up to date as matters progress.

For further information:

 
 Aseana Properties Limited                   Tel: [phone] 
 Gerald Ong, Chairman                        Email: [e-mail] 
 
 Liberum                                     Tel: [phone] 
 Gillian Martin/Owen Matthews (Corporate 
  Finance) 
 
 Tavistock Communications                    Tel: [phone] 
 Jeremy Carey / James Verstringhe            Email: [e-mail] 
 
 
 

Notes to Editors:

London-listed Aseana Properties Limited (LSE: ASPL LN) is a property developer investing in Malaysia and Vietnam.

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March 23, 2020 03:00 ET (07:00 GMT)