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Frasers Property recently announced that its indirect wholly-owned subsidiary Frasers Property Investments (Vietnam) 1 Pte., Ltd. (FPIV1) has entered into a conditional share purchase agreement with Tran Thai Land Company Limited to acquire 24 million ordinary shares.
|The Q2 Thao Dien project invested by Frasers Property|
These shares represent 75 per cent of the issued share capital of Phu An Khang Real Estate JSC.
The completion of the proposed acquisition is subject to the fulfilment of the conditions set out in the acquisition agreement, Frasers Property’s statement said.
If the proposed acquisition is completed successfully, Phu An Khang will become a subsidiary of Frasers Property. It is intended that Phu An Khang will undertake the development of a residential-cum-commercial project on a mixed-use development plot in District 2, Ho Chi Minh City.
The aggregate consideration for the proposed acquisition is VND408.6 billion (approximately $18 million).
The consideration was arrived at on a willing-buyer, willing-seller basis based on the estimated net asset value of Phu An Khang at completion, taking into account the value of the property.
The proforma net asset value of Phu An Khang based on its unaudited financial statements is expected to be VND544.8 billion (approximately $24.2million) on completion of the proposed acquisition.
Frasers Property further added that the consideration will be fully satisfied in cash on the occurrence of stipulated events as set out in the agreement and will be funded by the group’s internal cash resources and/or external bank borrowings.
Frasers Property Vietnam made its maiden foray into Vietnam in 1999 with the development of 22-storey retail/office building Me Linh Point Tower in District 1, the central business district of Ho Chi Minh City. Since then, it has embarked on a mixed development project in District 2, Thao Dien ward.