Strategic Update

RNS Number : 0936V

VinaCapital Vietnam Opp. Fund Ld

27 October 2010

 



27 October 2010

VinaCapital Vietnam Opportunity Fund Limited

Strategic update

The Board of Directors ("the Board") of VinaCapital Vietnam Opportunity Fund Limited ("VOF" or "the Company"), an investment company focused on Vietnam, announces several important strategic decisions designed to enhance returns to shareholders.

After carefully consulting with and considering the views of shareholders of the Company, the Board has resolved to distribute 4% of NAV per year in two payments per year following the finalisation of the half-year (interim) and annual financial statements of the Company. This equates to a yield of 5.6% per year based on yesterday's closing share price.  The Board aims to make the first distribution in May 2011 after the finalisation of the interim financial statements of the Company. Distributions will be made in the form of a tender for the repurchase of shares at Net Asset Value (NAV).

In addition to the announcement of the distribution policy the Board and the manager, VinaCapital Investment Management Ltd, will undertake the following initiatives:

·     The Board will convene an EGM to seek shareholders' approval to institute a share buyback mechanism within the Company's Articles of Association.

·     The Board is exploring the possibility of moving the Company's primary listing to another stock exchange with the view of broadening the Company's investor base.

·     The senior management of the Investment Manager will be visiting major investment locations in Asia, Europe and America over the coming months to meet with investors to explain these measures and the fund's strategic direction, as well as discussing the outlook for Vietnam.

The Board believes strongly that the above decisions will have a positive impact on the Company's operations and on the value delivered to shareholders.

Chairman of the Company, Mr. William Vanderfelt, said: "VOF has a strong and proven track record of investment results. However, like many emerging market closed-end funds, the past two years have seen the fund trade at a significant discount to net asset value. We believe that the above actions will help to rectify this situation, while placing the Company in a strong position to continue generating investment returns."

Notes to Editors

VinaCapital Group is a leading asset management, investment banking and real estate consulting firm with unrivalled experience in the Vietnamese market. VinaCapital Group was founded in 2003 and has grown from a single USD10 million fund to a diversified investment firm with USD1.8 billion in assets under management as of July 2010.

VinaCapital manages three closed-end funds trading on the London Stock Exchange's Alternative Investment Market (AIM). These are: VinaCapital Vietnam Opportunity Fund (VOF); VinaLand Limited (VNL); and Vietnam Infrastructure Limited (VNI). VinaCapital also co-manages the DFJ VinaCapital technology venture capital fund with Draper Fisher Jurvetson. More information is available at www.vinacapital.com

More information on VinaCapital Vietnam Opportunity Fund Limited is available at www.vinacapital.com/vof.

Enquiries:

Michael L. Gray

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] 

Alastair Hetherington

Financial Dynamics, Public Relations (Hong Kong)

[phone]

[e-mail] 

Andrew Walton

Financial Dynamics, Public Relations (London)

[phone]

[e-mail] 

 

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