Share buyback

RNS Number : 3207B

VinaCapital Vietnam Opp. Fund Ld

02 April 2013

 



2 April 2013

VinaCapital Vietnam Opportunity Fund Limited

Share buyback

VinaCapital Vietnam Opportunity Fund Ltd ('VOF', the 'Company') announces that on 28 March 2013, pursuant to the share buyback authority granted to the Company's Board of Directors on 25 October 2011 and in accordance with the terms referenced in the share buyback programme update announcement on 25 January 2013, Visaka Holdings Limited, a wholly-owned subsidiary of the Company, purchased 1,246,313 Ordinary Shares of USD0.01 each at an average price of USD2.10 per share.

Following this transaction, VOF has spent USD69.0 million overall repurchasing 42,029,973 shares which are held as treasury shares. The total number of shares acquired since November 2011 represents 12.9 percent of the Company's 324,610,259 Ordinary Shares in issue and as a result, total voting rights in the Company have been reduced to 282,580,286.

Recent share repurchases are set against the backdrop of some interesting macroeconomic developments in Vietnam over the past month. The consumer price index in March slowed to 6.6 percent on a year-on-year basis, mainly attributable to food and foodstuff prices increasing just 1.8 percent during the same period. The State Bank of Vietnam cut main policy rates by 100bps, therefore, the refinance and discount rate have been lowered to 8.0 and 6.0 percent, respectively while caps on deposit rates were lowered to 7.5 percent. This represents a signal to investors and businesses that the central bank is continuing to support the economy by lowering lending rates in an attempt to stimulate growth.

First quarter GDP figures showed the Vietnamese economy expanded by 4.9 percent, mostly driven by exports. It will be important for the foreign direct investment sector to continue to support growth as the government implements policy to improve domestic demand. During the month, foreign direct investment disbursement figures reached USD1.7 billion, bringing the total amount for the quarter to USD6.0 billion, an increase of 63.6 percent year-on-year. 

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 Corporate Finance, Nominated Adviser

[phone]

[e-mail]

Hiroshi Funaki

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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