Share Buyback and Market Update
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
+84 8 821 9930
Philip Secrett
Grant Thornton UK LLP, Nominated Adviser
+44 (0)20 7383 5100
Hiroshi Funaki / Andrew Davies
Edmond de Rothschild Securities, Broker
+44 (0)20 7845 5960
David Benda / Hugh Jonathan
Numis Securities Limited, Broker
+44 (0)20 7260 1000
Andrew Walton
FTI Consulting, Public Relations (London)
+44 (0)20 7269 7204
This information is provided by RNS
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