VinaLand Limited Divestment of 196HVT and SGPY Projects (4037V)

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 
  [phone] 
  [e-mail] / [e-mail] 
  Philip Secrett 
  Grant Thornton UK LLP, Nominated Adviser 
  [phone] 
  [e-mail] 
 
  David Benda / Hugh Jonathan 
  Numis Securities Limited, Broker 
  [phone] 
  [e-mail] 
 

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July 23, 2018 02:00 ET (06:00 GMT)