Monthly Investor Report

RNS Number : 8090Q

VietNam Holding Limited

17 October 2013

 



VietNam Holding Limited (the "Company")

Investor Report

A report detailing the activities of the Company for the month of September 2013 has been issued by VietNam Holding Asset Management Limited, the investment manager of the Company. Electronic copies of the report have been made available to shareholders on the Company's website at http://www.vietnamholding.com/latest-publications.aspx and a summary of the report is included below.

Investor Report Summary

Vietnam News

Vietnam's Ministry of Finance is to formally propose a means by which overseas investors can buy shares in listed companies that have already hit the 49% limit on foreign ownership. The proposal emulates the Thai model of offering depository rights for a certain number of shares beyond the 49% limit.  Holders would not be entitled to voting rights.  If the aggregate number of shares held by foreign investors subsequently falls below 49%, then those holding depository rights will be given the opportunity to convert them into common shares, until the cap is reached again. The aim is to increase market liquidity, and is in line with an initiative that the State Securities Commission has been proposing for some time.

The General Statistics Office announced that GDP growth in 3Q2013 was 5.54%, up from 5.00% growth achieved in 2Q2013 and 4.76% in 1Q2013. At the same time, the Purchasing Manager's Index (PMI) passed the critical 50 mark in September, at 51.5; up from 48.5 in July and 49.4 in August. The Customs Office revised trade balance numbers for September show a surplus of USD 90 million. Cumulatively for the first 9 months of 2013, the trade balance carries a small surplus of USD 12 million, backed by import value of USD 96.27 billion and export value of USD 96.26 billion. Foreign invested enterprises also posted a trade surplus balance of USD 3.85 billion YTD.

VNH Insights

At the Annual General Meeting held in Zurich on September 11, 2013, the VNH shareholders overwhelmingly approved all resolutions proposed by the Board. All Ordinary Business resolutions were approved with full or near-complete unanimity.

Three resolutions were approved as Special Business:

An adjusted Fee Structure for VNHAM as the investment manager; (1) for incremental NAV amounts between USD 100 and 150 million, the management fees will be reduced by 12.5% from 2% to 1.75%, for all incremental amounts above USD 150 million, by 25% from 2% to 1.5%; (2) the manager's share of the performance above the hurdle rate was decreased from 20% to 15%, a 25% reduction. The incentive fees are capped at 3% of NAV annually, the High Water Mark for June 30, 2014 will be reset at 8% over NAV per share as of September 30, 2013; and (3) 15% of the potential annual incentive fees are to be paid in form of VNH shares out of the treasury pool, if there are any.

Furthermore, the shareholders approved a continuation of the active Share Repurchase Program. The target of the 52-week average discount is to be at least 5% lower than the weighted average of a revised peer group.

Finally, a highly rewarding 89.6% of the shareholder votes extended VNH's corporate life and thus VNHAM's management mandate at least until 2016.

The line-up of good news continued on September 25 with the conversion of 10.25 million warrants into VNH shares. An additional 2.45 million warrants were subsequently placed by the trustee, for a final warrant conversion of 12.96 million new shares and incremental capital of USD 15.49 million.

The actual NAV per share fell very slightly last month from USD 1.699 to USD 1.688 as a result of a 7.15% dilution following the warrant conversions which have been adjusted for the NAV performance figures in this report.

VietNam Holding Asset Management Limited	Telephone: [phone]
Gyentsen Zatul - Investor Relations
Oriel Securities Limited (Nominated Adviser and Broker) Stewart Wallace / Neil Winward	Telephone: [phone]

 

END

 

 

MSCNKODPABDDDKD