Share Buyback and Market Update

RNS Number : 1948I

VinaCapital Vietnam Opp. Fund Ld

28 May 2014

 



28 May 2014

VinaCapital Vietnam Opportunity Fund Limited

Share buyback

VinaCapital Vietnam Opportunity Fund Ltd ('VOF', the 'Company') announces that on 23 May 2014, pursuant to the share buyback authority granted to the Company's Board of Directors on 25 October 2011, Visaka Holdings Limited, a wholly-owned subsidiary of the Company, purchased 410,875 Ordinary Shares of USD0.01 each at an average price of USD2.3136 per share.

Following this transaction, VOF has spent USD163.4 million overall repurchasing 85,150,086 shares which are held as treasury shares and have reduced the total voting rights in the Company to 239,460,173. The total number of shares acquired since November 2011 represents 26.23 percent of the Company's 324,610,259 ordinary shares in issue. As a result of the Company's share buyback programme, VOF has recorded USD0.33 in cumulative accretion, equating to an 11.1 percent benefit to VOF's net asset value per share.

Investment Manager update on the market in Vietnam

As at 26 May 2014, the VN Index closed at approximately 540, a decline of 6.6 percent from its close at the end of April. Over the past three weeks, the index has experienced a large amount of volatility, dropping to as low as 514 on 13 May 2014, as the news of the rioting in several industrial parks which caused considerable damage to a number of foreign owned factories in those cities. The riots were originally set up as a protest against China's deployment of a state-owned oil rig, accompanied by a flotilla of naval and merchant vessels, in disputed waters 120 nautical miles from the Vietnamese coast near the Paracel Islands. Despite these events and the drop in the VN Index, Foreign money managers have purchased a net USD96.7 million worth of securities across both bourses in May, following a net purchase of USD74.6 million for the month of April. Given these stable macroeconomic fundamentals, foreign investors have taken advantage of Vietnam's biggest stock market retreat since 2001 to boost their holdings in expectation that falling prices due to escalating tension with China prove to be short-lived.

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

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

 

 

MSCAPMATMBTTMMI