Singapore’s CapitaLand acquires stake in Vietnam based company
CapitaLand Limited announced that its wholly owned subsidiary, CLV Investment 5 Limited has acquired a 20% interest in CapitaLand-Thien Duc Company Limited , a company incorporated in Vietnam , from a party unrelated to CapitaLand for a cash consideration of US$17.9 million (approximately S$25.4 million) .
Prior to the Acquisition, CapitaLand held 30% interest in CTD. CTD holds a mixed use development in Ho Chi Minh City known as Vista Verde which comprises 1,152 residential units; it also holds two land plots in the vicinity of Vista Verde which are to be developed into landed shop houses and high-rise residential units.
The Acquisition is consistent with CapitaLand strategy to increase its residential development portfolio in Vietnam. The Consideration was arrived at on a willing-buyer and willing-seller basis, taking into account the adjusted net tangible asset value of the Acquired Interest of US$17.9 million (approximately S$25.4 million) based on the management accounts of CTD as of 31 December 2016 and other commercial considerations.
Following the Acquisition, CTD has become a 50% owned associated company of CapitaLand. The Acquisition is not expected to have any material impact on the net tangible assets or earnings per share of the CapitaLand Group for the financial year ending 31 December 2017. None of the Directors or the controlling shareholder of CapitaLand has any interest, direct or indirect, in the Acquisition.