Frasers Property buys 75% stake in Vietnamese developer for S$47.33m
Singapore’s Frasers Property, formerly known as Frasers Centrepoint, has agreed to conditionally acquire a 75 percent stake in a Vietnamese developer for VND799 billion
Singapore’s Frasers Property, formerly known as Frasers Centrepoint, has agreed to conditionally acquire a 75 percent stake in a Vietnamese developer for VND799 billion (approx. S$47.33 million) in cash, revealed an SGX filing on Thursday (12 July).
The acquisition will be undertaken by its indirect wholly-owned unit Frasers Property Investments (Vietnam) 2, which intends to purchase 45 million ordinary shares in Phu An Dien Real Estate Joint Stock Company (PAD) from Tran Thai Lands Company.
“PAD will undertake the development of a residential-cum-commercial project on a plot in Linh Trung Ward, Thu Duc District, Ho Chi Minh City, Vietnam that will be held by PAD.”
The selling price was arrived on a willing-buyer, willing-seller basis based on PAD’s estimated net asset value upon completion of the deal, taking into account the worth of the mixed-use project.
“The proforma net asset value of PAD based on its unaudited financial statements is expected to be VND1,065.3 billion (approx. S$63.11 million) on completion of the proposed acquisition.”
“The consideration is subject to adjustments in accordance with the terms of the agreement. It 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.”
Upon completion of the transaction, PAD will become a subsidiary of Frasers Property. The deal is also not expected to have any material impact on the group’s net tangible assets per share or earnings per share for the present financial year.
Senior Content Producer, Christopher Chitty, edited this story.