VinaLand Board update on corporate strategy proposal
As announced last month, the Board of VinaLand Limited (VNL, the ‘Company’) has convened an extraordinary general meeting (EGM) to be held on Wednesday 21 November 2012 to seek shareholder support for the proposed reorganisation of VNL. The details of this proposal were announced on 23 October 2012 and have been posted to company shareholders by way of a circular. The Board would like to remind all shareholders of the proposal presented and reiterate the importance of voting at the EGM to be held in one week’s time.
During the past 15 months the VNL Board has sought extensive feedback from shareholders through various meetings and forums as part of its consultations on the Company’s future strategy. This feedback has been used to formulate the proposal which the Board has recommended that shareholders vote in favour of at the EGM.
In summary, the proposal is:
The VNL Board believes the proposal is a balanced compromise, which was arrived at after extensive consultations with shareholders and long negotiations with the Manager and which should deliver the outcome sought by the majority of shareholders.
In the event that the Board proposal is not approved, shareholders should be aware that this could result in a number of undesirable outcomes:
i. Sourcing and engaging a new manager with appropriate property development experience in Vietnam is likely to be very difficult.
ii. The accrued $28.2 million performance fee owed to the Manager will become payable immediately in cash.
iii. A potential liquidation of the fund, which the board believes would be value destructive.
The Board believes that the proposal aligns the interests of the Manager and shareholders. The Board therefore reiterates its recommendation that Shareholders vote AGAINST the Continuation Resolution and FOR the Reorganisation Resolution to be proposed at the EGM.
VinaCapital Investment Management Limited
+84 83 821 9930
Grant Thornton Corporate Finance, Nominated Adviser
+44 (0)20 7583 5100
Hiroshi Funaki / William Marle
LCF Edmond de Rothschild Securities, Broker
+44 20 7845 5960
Hugh Jonathan / David Benda
Numis Securities Limited, Broker
+44 (0)20 7260 1000
FTI Consulting, Public Relations (Hong Kong)
+852 3716 9802
FTI Consulting, Public Relations (London)
+44 (0)20 7269 7204