Investing Update
4 August 2009
RNS release
VinaCapital Vietnam Opportunity Fund Limited
Statement of intent to invest in closed-end funds
VinaCapital Vietnam Opportunity Fund Limited ('VOF' or 'the Company'), an AIM-traded investment company established to target key growth segments within Vietnam's emerging market, announces its intention to invest in shares of other Vietnam-focused closed-end funds trading at substantial discounts.
The Board of Directors of the Company ('the Directors') have elected, subject to market conditions and following certain procedures, to allow VOF to invest up to 10 percent of its Net Asset Value ('NAV') at the time of purchase in shares of other closed-end Vietnam funds. This includes VinaLand Limited ('VNL'), an AIM-traded closed-end fund also managed by VinaCapital Investment Management Limited ('VinaCapital' or 'the Investment Manager') with a primary focus on real estate investment.
Investment in VinaLand / Fee rebate
Real estate investment has been a key strategy for VOF since its inception. After VinaLand was established in March 2006, VOF has selectively co-invested alongside VinaLand in its direct real estate investments. However, over the past 6 months VNL shares have traded at discounts of up to 80%. In light of this substantial discount, the Board has elected to allow VOF to make its real estate investments indirectly through VNL shares.
The Investment Manager will rebate to VOF the management fees corresponding to the portion of VOF's holding in VNL shares.
As described in VNL's admission document, VOF has the right of first refusal to take up to a 25 percent direct stake in newly acquired VNL assets. VOF will temporarily suspend this right during such periods of VOF investment in VNL shares until further notice.
As at the date of this announcement, the Company held 14,749,044 shares in VNL, representing a 2.95 percent equity stake in VNL and 1.49 percent of the Company's NAV.
In respect of any VOF investment in other funds managed by VinaCapital, the Directors have instituted the following protocols. VOF will enter into fixed arrangements with an independent broker to specifically purchase on its behalf and within certain pre-set parameters, ordinary shares of the other fund or funds managed by VinaCapital. VOF intends to acquire and hold shares in other funds managed by VinaCapital via such arrangements on a rolling basis. Furthermore, only the Independent Directors of the VOF Board shall be authorised to provide instructions to the third party broker and to vote on behalf of VOF at any shareholder meetings of the other funds managed by VinaCapital.
In the event that VOF invests in listed closed-end investment funds not managed by VinaCapital, the above protocols will not apply, and the Investment Manager shall exercise its judgment on behalf of the Company's shareholders within its standard trading authorities.
For more information please contact:
Chi Nguyen
VinaCapital Investment Management Limited
Investor Relations
+84 8 821 9930
Philip Secrett
Grant Thornton UK LLP, Nominated Adviser
+44 20 7383 5100
Hiroshi Funaki
LCF Edmond de Rothschild Securities, Broker
+44 20 7845 5960
Alastair Hetherington
Financial Dynamics, Public Relations (Hong Kong)
+852 3716 9802
David Cranmer
Financial Dynamics, Public Relations (London)
+44 207 269 7100
Notes to Editors:
VinaCapital Group is the leading asset management firm in Vietnam, with over USD1.6 billion in assets under management as of June 2009. More information is available at www.vinacapital.com.
VinaCapital Vietnam Opportunity Fund Limited (AIM: VOF) (the 'Company'), is a closed-end fund traded on the AIM Market of the London Stock Exchange plc. Launched in September 2003, the Company focuses on the key growth sectors of the domestic economy including financial services, retail, consumer goods, tourism, property, infrastructure, and technology. It makes equity and debt investments in listed, OTC-traded, and private companies, and participates in the privatisation of state-owned companies. The Company's net asset value at 30 June 2009 was USD681 million.
More information about the Company can be found at the Company's website at www.vietnam-opportunity-fund.com.
This information is provided by RNS
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