VOF sells stake in Keating Capital

RNS Number : 0400U

VinaCapital Vietnam Opp. Fund Ld

20 December 2012

 



20 December 2012

VinaCapital Vietnam Opportunity Fund Limited

VOF sells stake in Keating Capital

VinaCapital Vietnam Opportunity Fund Limited ("VOF" or "the Company") (VOF.L), an AIM-traded investment company established to target key growth segments within Vietnam, announces today that it has entered a Shares Purchase Agreement ("SPA") to divest its stake in Keating Capital Partners PTE LTD ("Keating Capital"), to SCG Building Materials Company Limited ("SCG"), a 100 percent owned subsidiary of Siam Cement Public Company Limited.

VOF will sell its ownership in the company to SCG for USD32.6 million in cash, representing an IRR of 33 percent from this investment following a three year holding period. This divestment will add 8 cents to VOF's NAV per share at 31 December 2012.

Keating Capital is the holding company for one of Indochina's leading construction material manufacturers with six ceramic tile factories and a nationwide distribution network resulting in a 20 percent market share. The manufacturer's 2011 revenue, EBITDA and profit were USD170 million, USD44 million and USD10.5 million, respectively.

Regarding the transaction, Andy Ho, VinaCapital's Chief Investment Officer stated, "This significant divestment is indicative of the quality of VOF's portfolio and provides further evidence to support our belief, that VOF's share price to NAV discount is too wide. We continue to execute solid exits which showcase the value of VOF's portfolio, not currently being reflected at the Company's current share price. Proceeds from this divestment are currently being considered for a few major private equity investment opportunities."

About VinaCapital

VinaCapital is a leading asset management and real estate development firm in Vietnam, with a diversified portfolio of USD1.5 billion in assets under management. VinaCapital was founded in 2003 and boasts a team of investment professionals who bring extensive international finance and investment experience to the firm. Our mission is to produce superior returns for investors by using our experience and knowledge to identify the key trends and opportunities that emerge as Vietnam continues to develop its economy. To achieve this, VinaCapital has teams with broad experience covering equity markets, fixed income, private equity, venture capital, real estate and infrastructure.

VinaCapital manages three closed-end funds trading on the AIM Market of the London Stock Exchange. These funds are: VinaCapital Vietnam Opportunity Fund Limited (VOF), VinaLand Limited (VNL), and Vietnam Infrastructure Limited (VNI). VinaCapital also co-manages the DFJ VinaCapital L.P. technology venture capital fund with Draper Fisher Jurvetson.

VinaCapital has offices in Ho Chi Minh City, Hanoi, Danang, Nha Trang, Phnom Penh (Cambodia) and Singapore. More information about VinaCapital and VOF is available at www.vinacapital.com and www.vinacapital.com/vof.

Enquiries:

David Dropsey
VinaCapital Investment Management Limited
Investor Relations/Communications
[phone]
[e-mail]

Philip Secrett

Grant Thornton Corporate Finance, Nominated Adviser

[phone]

[e-mail]

 
Hiroshi Funaki
LCF Edmond de Rothschild Securities, Broker
[phone]
[e-mail]

David Benda / Hugh Jonathan
Numis Securities Limited, Broker
[phone]

Mark Walters
FTI Consulting, Public Relations (Hong Kong)
[phone]
[e-mail]

Andrew Walton
FTI Consulting, Public Relations (London)
[phone]
[e-mail]

 

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