Vietnam Infrastructure Limited, a publicly traded fund focused on infrastructure assets in Vietnam, has acquired a majority stake in Mobile Information Service, a company focused on building and leasing mobile telecommunication network towers. The firm acquired a 30% stake in Mobile Information Service in March 2008, and recently increased the stake to 75%.
Vietnam Infrastructure Limited (the “Company” or “VNI”) (VNI.L), the first publicly traded fund to focus on infrastructure assets in Vietnam, today announces it has increased its stake in Mobile Information Service Joint Stock Company (MIS), a joint stock company specialised in building and leasing mobile telecommunication network towers.
VNI originally acquired a 30 percent stake in MIS in March 2008. At that time, MIS owned 25 base transceiver station (BTS) towers. MIS has grown its operations and now owns 287 BTS towers, and is in the process of building an additional 30 towers.
The transaction gives VNI an additional 45 percent stake, or 75 percent of MIS’s equity. VNI will hold three of four seats on the MIS Board of Directors, and two of three seats on the Inspection Committee Board.
“This acquisition follows our strategy of acquiring a significant portfolio of BTS tower assets. MIS has grown its operations significantly over the past three years, and continues to have strong growth potential,” says Tony Hsun, managing director of VNI’s investment manager.
The number of mobile phone subscribers in Vietnam has increased rapidly, from 69 million in 2008 to over 155 million by December 2010. The need for mobile network infrastructure is expected to increase further with the continued roll-out of 3G networks.
VNI holds significant stakes in five BTS tower companies, which together own and lease over 2,000 BTS towers.
“Our aim is to increase the number of towers owned and the network density per tower, both of which are an important means to generate exit potential in this component of our portfolio,” says Tony.
VNI on 28 February 2011 announced the acquisition of a stake in SII, a newly established infrastructure trust.
“The fund continues to make progress in deploying capital, and we expect to be fully invested and begin exiting select assets during this year,” says Tony.
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 June 2010.
VinaCapital Investment Management Ltd manages three closed-end funds trading on the AIM Market of the London Stock Exchange. These are:
— Vietnam Opportunity Fund (VOF) is a diversified investment fund that has consistently been among the top performing Vietnam funds.
— VinaLand Limited (VNL) is a real estate fund that was the top performing Vietnam investment fund in 2008.
— Vietnam Infrastructure Limited (VNI) is a fund established in July 2007 as the first overseas fund to invest solely in Vietnam’s infrastructure sector.
VinaCapital also co-manages the DFJ VinaCapital technology venture capital fund with Draper Fisher Jurvetson, and owns a dominant stake in VinaSecurities JSC, a brokerage. More information is available at www.vinacapital.com.