CII sells stake to quench capital thirst

CII will divest at least 50 per cent of its shares to finance several large-scale projects (Illustration)

Notably, CII will sell 123.12 million shares at the price of VND15,000 ($0.66) for its existing shareholders. CII expected to divest at least 50 per cent worth VND923.4 billion ($40.6 million) via the sale.

After the sale, CII plans to sell 17.71 million individual shares to South Korean Rhinos Asset Management Co., Ltd. (RAM) at the price of VND26,040 ($1.16) apiece.

After these sales, CII’s chartered capital is expected to reach VND4.2 trillion ($184.7 million).

RAM was also a partner in a previous deal. Earlier in November 2016, CII signed a deal to sell a convertible bond volume worth $40 million to KEB Hana Banktrustee and Custodian Business. Under the contract, CII would issue 400 non-guaranteed convertible bonds at the price of $100,000 per unit and an annual yield of 1 per cent for five years.

CII is entitled to redeem bonds from the third year after the sale, but the buyback amount cannot exceed 50 per cent of the total bond volume. Accordingly, RAM is allowed to convert at most 50 per cent of the bonds into shares with a conversion price of VND38,500 ($1.71) per share or resell the bond volume at the initial price to CII and enjoy a yield of 4.5 per cent a year.

CII has a portfolio of strategic infrastructure assets, including water treatment plants. The water company also holds a stake in Thu Duc Water BOO Corp., a water treatment company now 49 per cent owned by Manila Water.

In addition to water infrastructure, CII holds several toll road concessions, such as the 15.7-kilometre expansion of Hanoi Highway, which connects Ho Chi Minh City with southern industrial hub Bien Hoa.

In July, CII signed a memorandum of understanding with Hong Kong Land to jointly develop luxurious high-end apartments on a prime land site that local authorities agreed to give to the company as it conducted the build-transfer (BT) infrastructure project in Ho Chi Minh City's Thu Thiem area.

The joint venture will develop luxury residences, promising to set a new quality standard for Vietnam. The projects will consist of approximately 965 units including luxury apartments, airy villas, and garden apartments enjoying the scenic views of the Saigon River and the surrounding green areas.

These projects will also offer apartment units designed in a variety of sizes ranging from one to four bedrooms, with amenities such as swimming pools, public green areas, and boutique supermarkets to ensure a lush and comfortable living environment.

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