Vietnam Infrastructure, a publicly traded fund focusing on infrastructure assets in Vietnam, has increased its ownership to 100 percent of VNC-55 Infrastructure Investment. The company specialises in building and leasing 715 Base Transceiver Station towers to mobile service providers.
Vietnam Infrastructure Limited (the “Company” or “VNI”), the first publicly traded fund to focus on infrastructure assets in Vietnam, announces that in January 2012, VNI increased its ownership to 100 percent of the VNC-55 Infrastructure Investment Joint Stock Company, which specialises in building and leasing 715 Base Transceiver Station (BTS) towers to mobile service providers.
In order to gain a 100 percent stake and full control of VNC-55 from its previous 40 percent position, the Company invested an additional USD13.02 million, valuing VNC-55 at USD 21.66 million. This represents a premium of 32.2 percent to its NAV of USD16.39 million as at 31st December 2011 (unaudited financial statements, IFRS adjusted). The Company strongly believes that obtaining full control of VNC-55 will help achieve its investment strategic goals, therefore providing superior returns for shareholders. The Company will grow VNC-55 through strategic expansion and improved efficiency throughout the business’ core functions, while achieving an expected EBITDA margin above 65 percent over the next three years. For FY2011, VNC-55 achieved a net profit of VND17.2 billion (approximately USD 0.82 million).
Vietnam’s wireless network industry is continuing to experience rapid growth as the country develops and its middle class population expands. The country’s mobile penetration rate in 2011 stood at 172 percent of the country’s 87 million population, well above the 41 percent penetration rate of 2007. This rate is expected to grow by more than 4% annually, over the next five years.
Based on Vietnam’s current network, major mobile phone operators are expected to require approximately 6,000 new BTS towers over the next two years, especially in rural areas and secondary cities.
Combining this investment with the Company’s previous investments in Global Infrastructure Investment Ltd (GII), Mobile Infrastructure Development Company (MIDC), and Mobile Information Services (MIS), it now owns approximately 2,000 existing BTSs nationwide.
VinaCapital is the leading investment management and real estate development firm in Vietnam, with a diversified portfolio of USD1.6 billion in assets under management. VinaCapital was founded in 2003 and boasts a team of managing directors who bring extensive international finance and investment experience to the firm. Our mission is to produce superior returns for investors by using our experience and knowledge to identify the key trends and opportunities that emerge as Vietnam continues to develop its economy. To achieve this, VinaCapital has industry-leading asset class teams covering capital markets, private equity, fixed income, venture capital, real estate and infrastructure.
VinaCapital manages three closed-end funds trading on the AIM Market of the London Stock Exchange. These funds are: VinaCapital Vietnam Opportunity Fund Limited (VOF), VinaLand Limited (VNL), and Vietnam Infrastructure Limited (VNI). VinaCapital also co-manages the USD32 million DFJ VinaCapital L.P. technology venture capital fund with Draper Fisher Jurvetson.
VinaCapital has offices in Ho Chi Minh City, Hanoi, Danang, Nha Trang, Phnom Penh (Cambodia) and Singapore. More information about VinaCapital is available at www.vinacapital.com.
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