Divestment of a stake in Vinamilk

RNS Number : 5575P

VinaCapital Vietnam Opp. Fund Ld

19 August 2014

 



19 August 2014

VinaCapital Vietnam Opportunity Fund Limited

Divestment of a stake in Vinamilk

VinaCapital Vietnam Opportunity Fund Ltd ('VOF', the 'Company') today announces it has sold 3.6 million shares of Vietnam Dairy Products Company (Vinamilk) at VND123,333 per share, a 9.7 percent premium over the market price at the time of the sale and purchase agreement (SPA). The rationale behind selling these shares is part of an ongoing process of rebalancing VOF's portfolio, specifically freeing up cash in order to capitalize on several private equity investments in the Company's pipeline.

Following this transaction, Vinamilk still remains the largest listed holding in VOF's portfolio, at USD87.2 million (valued at current market price), representing 10.8 percent of the Company's 31 July 2014 net asset value.

We continue to view Vinamilk as an attractive investment, as the company is one of the most profitable in Vietnam, with approximately USD140 million in net income on USD800 million in revenue during the first half of 2014, generating a return on equity of 33.0 percent. Additionally, the acquirer of these shares is one of Vinamilk's major shareholders, which reaffirms our confidence in the long-term prospects of the company.

For more information on the Company is available at www.vinacapital.com/vof

Enquiries:

Enquiries:

David Dropsey

VinaCapital Investment Management Limited

Investor Relations/Communications

[phone]

[e-mail]

Philip Secrett

Grant Thornton UK LLP, Nominated Adviser

[phone]

[e-mail]

Hiroshi Funaki / Andrew Davies

Edmond de Rothschild Securities, Broker

[phone]

[e-mail]  

David Benda / Hugh Jonathan

Numis Securities Limited, Broker

[phone]

[e-mail]

Andrew Walton

FTI Consulting, Public Relations (London)

[phone]

[e-mail]

 

END

 

 

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