Aseana First Distribution Update

RNS Number : 3044C

Aseana Properties Limited

15 October 2015

 

15 October 2015

Aseana Properties Limited

("Aseana" or the "Company")

First Distribution Update

Aseana Properties Limited (LSE: ASPL), a property developer in Malaysia and Vietnam, listed on the Main Market of the London Stock Exchange, today provides an update on its planned redemption.

On 22 May 2015, the Company published a circular regarding the future of the Company ("May 2015 Circular"), stating that the Board and Ireka Development Management Sdn. Bhd. (the "Manager") are committed to realising the Company's assets in a controlled, orderly and timely manner with a view to achieving a balance between returning cash to Shareholders and maximising the realisation value of the Company's investments. The proposals regarding the future of the Company received Shareholder approval on 22 June 2015. On 7 August 2015, the Company published a second circular ("EGM Circular"), regarding the introduction of a compulsory redemption mechanism to return cash to Shareholders, which received shareholder approval on 27 August 2015.

In the EGM Circular, the Company stated it anticipated making a first distribution in Q3 2015 ("First Distribution"), subject to lenders' consents, the receipt of confirmatory certificates from the Company's reporting accountants and/or auditors to support the Directors' statement of solvency and any necessary Shareholder authorities, and that Board intended to make distributions of not less than US$20 million in 2015.

On 27 August 2015, the Manager submitted applications for the aforementioned lenders' consents over a First Distribution of US$10 million, which were expected to be granted before the end of September. As lenders' consents were required for the introduction of the compulsory redemption mechanism to return cash to Shareholders and these were received in a timely manner in earlier applications, it was not anticipated that there would be any delay in receiving these consents for the First Distribution. However, at the time of this announcement, the consents from certain of the lenders for the First Distribution remain outstanding. For the avoidance of doubt, the Company does not intend to make application for consents for a second distribution whilst consents for the First Distribution are outstanding and as such it is unlikely that the Company will be able to make a second distribution in 2015. In this event, the Company intends to make the second distribution at the earliest possible date in 2016, subject to obtaining the requisite consents and confirmatory certificates.

Over the past few months, the economic condition and outlook in Malaysia have both deteriorated rapidly.  Business confidence and investment sentiments are poor caused by among others, low oil and commodity prices, and uncertainties over weakening of Malaysian Ringgit against US Dollars and other major currencies. It is the Manager's view that this has affected the lenders' ability to approve the applications for consent in a timely manner. The Manager continues to liaise with the lenders with the view to being granted the requisite consents at the earliest opportunity.

The Board and the Manager emphasise they are strongly committed to returning cash to Shareholders and the Board intends to make the First Distribution as soon as the lenders' consents are received and the other conditions described above are met.  The application for second distribution will be made as soon as practically possible after the First Distribution.   The Company will provide Shareholders with a further update on the situation at the earlier of receiving the outstanding consents or at the end of first week of November.

For further information:

Aseana Properties Limited	Tel: [phone]
Chan Chee Kian	Email: [e-mail]
N+1 Singer	Tel: [phone]
James Maxwell / Liz Yong (Corporate Finance) Sam Greatrex (Sales)
Tavistock	Tel: [phone]
Jeremy Carey / James Verstringhe	Email: [e-mail]

Notes to Editors:

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

Ireka Development Management Sdn Bhd ("IDM") is the exclusive Development Manager for Aseana. It is a wholly-owned subsidiary of Ireka Corporation Berhad, a company listed on the Bursa Malaysia since 1993, which has over 45 years of experience in construction and property development. IDM is responsible for the day-to-day management of Aseana's property portfolio and the introduction and facilitation of new investment opportunities.

 

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