VinaLand Limited Notice of Tender Offer and Divestment (0458Q)

TIDMVNL

RNS Number : 0458Q

VinaLand Limited

07 September 2017

7 September 2017

VinaLand Limited (the "Company" or "VNL")

Notice of Tender Offer to Shareholders and Divestment of stake in the Vina Square project

Ho Chi Minh City - VinaLand Limited, the AIM-quoted investment vehicle established to target strategic segments within Vietnam's emerging real estate market, announces that it will conduct a distribution of up to USD60 million to shareholders through a tender offer to purchase Ordinary Shares of USD0.01 each in the Company (the "Tender Offer"). The Tender Offer is offered to all shareholders on the register at 6:00 pm UK time on 15 September 2017 (the "Tender Offer Record Date") at a fixed price of USD0.83 per Ordinary Share (the Tender Price). Shareholders can either elect to accept or decline participation in the Tender Offer. Consequently, the Company intends to repurchase, in aggregate, such number of Ordinary Shares at the Tender Price as is equal to USD60 million (the Tender Value Cap). Accordingly, if Shareholders in aggregate tender Ordinary Shares more than the Tender Value Cap, elections will be scaled back to the Tender Value Cap. To the extent that not all shareholders elect to participate in the Tender Offer, the Company will be able to acquire from Tendering Shareholders additional Ordinary Shares up to the Tender Value Cap.

All Ordinary Shares repurchased by the Company pursuant to the Tender Offer will be cancelled.

 
The timetable for the Tender Offer is as follows: 
 
Tender Offer Record Date                            6.00 p.m. (UK time) on Friday 15 September 2017 
Latest time and date for receipt of Election Forms  5.00 p.m. (Singapore time) on Friday 6 October 2017 
Results of the Tender Offer announced               Tuesday 10 October 2017 
Settlement Date for the Tender Offer                Friday 13 October 2017 
 

Further information on the Tender is available in the Tender Circular and Tender Form which have been sent to shareholders and which are available on the Company's website at http://vnl-fund.com.

The ongoing share buyback was placed on hold prior to the date of this announcement and shall remain on hold until the results of the tender offer are announced.

Furthermore, the Company announces that it is divesting its stake in the Vina Square project (the "Project"), located in Ho Chi Minh City, Vietnam. The Project consists of a total land area of approximately 3.0ha and was acquired by VNL in 2007, at which time the land was designated as a future development site. VNL is divesting its entire stake in the Project to Tri Duc Real Estate Company Limited, a Vietnamese development company for net cash proceeds of approximately USD41.2 million which includes the repayment of shareholder loans, resulting in an IRR of 3.3% to the Company. The total valuation is recorded at 0.3% above the 30 June 2017 unaudited net asset value and 13.5% above the unaudited net asset value at the time of VNL's extraordinary meeting in November 2016, both figures include adjustments for additional investments up to the date of exit. At the time of this announcement, USD41.0 million or 99.5% of the net proceeds have been received by the Company. It is expected that all proceeds will be received by the Company by the end of this month.

Speaking on the transaction, Managing Director David Blackhall stated, "This Tender Offer follows the announcement today of the Vina Square disposal, for which all proceeds will be received in September enabling further distributions to shareholders during October 2017. This divestment is in accordance with the current stated policy to divest projects in a controlled and orderly manner, and steady progress has been made with further pipeline disposals. The proceeds received from this disposal will, in conjunction with collections from earlier disposals including prepayment advances for future pipeline disposals will be used to cover VNL's commitments including operating costs, capital contributions and further distributions to shareholders."

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]

This information is provided by RNS

The company news service from the London Stock Exchange

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September 07, 2017 02:01 ET (06:01 GMT)