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16 November 2018
VinaLand Limited (the "Company" or "VNL")
Divestment of the last two remaining projects and Distribution of Capital from Share Premium Account of the Company
Ho Chi Minh City - VinaLand Limited, the AIM-quoted investment vehicle established to target strategic segments within Vietnam's emerging real estate market announces that it is divesting its stake in the Green Park Estate project, located in Ho Chi Minh City, Vietnam. The Project consists of a total land area of approximately 15.7ha and was acquired by VNL in 2007, with the land designated for a future mix-use development. VNL is divesting its entire stake in the Project to Van Thanh Real Estate Investment Company Limited for net cash proceeds of approximately USD35.3 million, which includes the repayment of shareholder loans, resulting in an IRR of 0.9% to the Company. The total valuation is recorded at 22.5% above the 30 September 2018 unaudited net asset value, and 14.8% above the unaudited net asset value at the time of VNL's extraordinary meeting in November 2016. Both figures include adjustments for additional investments up to the date of exit. At the time of this announcement, USD35.2 million or 99.5% of the net proceeds have been received by the Company, and it is expected that all proceeds will be received by the Company by the end of November 2018. Additionally, VNL has now received the final return from the development of Garland project, located in Ho Chi Minh City, with net proceeds of USD0.9 million to VNL, which is equal to the 30 September 2018 unaudited net asset value, and 37.8% below the net asset value at the time of the 2016 EGM including adjustments for additional investments over this period. At the time of this announcement, 100% of proceeds have been received by the Company.
Speaking on the transactions, Managing Director David Blackhall stated, "The divestment of VinaLand's last two projects are in accordance with the stated policy to divest projects in a controlled and orderly manner. The proceeds received from these final disposals, in conjunction with proceeds collected from earlier disposals will be used for shareholder distributions after setting aside funds to cover VNL's commitments including operating and liquidation costs as the Company proceeds towards delisting in 2018 and ultimately liquidation of the Company in 2019."
The Company also announces that following the disposal of all projects in the portfolio, it will make a distribution of USD0.31 per ordinary share from the Company's Share Premium Account.
The distribution of approximately USD45.45 million in total will be returned equally to all shareholders, representing USD0.31 per ordinary share.
Details of the distribution are as follows:
· Ex-distribution date: Thursday, 29 November 2018
· Record date: Friday, 30 November 2018
· Paid date: Wednesday, 05 December 2018
In conjunction with the Distribution, the Company announces that early next week it intends to publish a circular (the "Circular") including a Notice of Annual General Meeting (the "AGM") setting out, among the standard resolutions details of the recommended proposals for the cancellation of admission of the Ordinary Shares to trading on AIM. The AGM is scheduled to take place on 14 December 2018.
More information on the Company is available at https://vnl.vinacapital.com/.
The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
Grant Thornton UK LLP, Nominated Adviser
+44 (0)20 7383 5100
David Benda / Hugh Jonathan
Numis Securities Limited, Broker
+44 (0)20 7260 1000
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