VEIL concludes oversubscribed tender offer amid broad net foreign outflows

The tender offer, capped at 10 per cent of the company’s issued share capital, saw 96.29 million ordinary shares submitted, representing 70.06 per cent of outstanding shares, excluding treasury shares.

Of these, 72.99 million shares were submitted under the cash exit option, while 23.3 million shares opted for the in-specie option, which provides a corresponding basket of assets.

The tender price is set at a 2.5 per cent discount to the adjusted net asset value (NAV) per share as of July 8. The final price is scheduled for announcement today, July 9, with cash payments and in-specie distributions expected by July 13.

To finance this substantial repurchase, VEIL will need approximately $155.6 million, given the $11.62 NAV per share on July 8. As of late May 2026, its cash reserves had declined to 2.8 per cent, equating to roughly $45 million.

While the fund maintains an available credit facility of $200 million, with current borrowings at $50.3 million, it is highly likely that some portfolio restructuring will be required.

This tender offer is just the initial phase of VEIL’s broader buyback plan announced in late 2025, with two additional tranches planned over the next 12 months, potentially returning up to 30 per cent of charter capital to shareholders.

This raises the prospect of short-term price pressure on major blue-chip companies. By the end of May, the top 10 holdings of the fund consisted entirely of industry leaders, including VIC, VHM, BID, MWG, VCB, VPB, CTG, HPG, TCB, and ACB.

These equities collectively accounted for more than 54 per cent of VEIL’s total assets under management.

The move comes against a backdrop of intense liquidity pressure across the wider equity market. According to SSI Research, net foreign outflow has reached an estimated $3.21 billion in the first half of 2026.

SSI analysts largely attributed the persistent net foreign selling pressure to a stronger US dollar and interest rates remaining higher for longer, which has prompted global asset managers to restructure their international portfolios.

In response to these sustained outflows and broader market corrections, domestic asset managers are becoming increasingly defensive.

Cash holdings increased across 19 of the 37 Vietnam’s open-ended equity funds monitored in May, reversing a previous trend of gradual disbursement as caution takes hold.

In contrast to the broader segment, closed-end funds have demonstrated notable resilience, seeing their outflows narrow for the fourth consecutive month.

Notably, VEIL itself reported a 55.1 per cent on-month drop in net outflows to $6.08 million in May, preceding its larger restructuring programme and tender offer tranches.

The VEIL fund focuses on securing medium to long-term capital growth by targeting industry leaders with robust growth metrics, strong corporate governance, and clear competitive advantages aligned with Vietnam’s economic drivers.

Leveraging its closed-end fixed capital structure, the fund actively pursues large private transactions and initial public offerings, alongside a minor allocation to high-growth stocks.

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