REG - VinaCapital Vietnam - Clarification on adjustments to Net Asset Value

VinaCapital Vietnam Opportunity FundAnnouncement

10/03/2023 10:45

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RNS Number : 6013S  VinaCapital Vietnam Opportunity Fd.  10 March 2023

VinaCapital Vietnam Opportunity Fund Limited

 

(the "Company" or "VOF")

 

Additional clarification on the valuation adjustments to Net Asset Value (NAV)
- 10 March 2023

 

Further to the announcement on 6 March 2023, where the Company announced a
change in daily NAV which included a decrease of USD 25.8 million (2.64% of
NAV) arising from the approval by the Audit Committee of valuation adjustments
to certain public equity with private terms and private equity investments as
of 31 December 2022, the Board wish to provide some further detail.

 

The decline in NAV relates principally to the revaluation of certain
investments related to the NovaGroup Joint Stock Company ("NovaGroup"), which
is the holding company of the listed company Novaland Joint Stock Company
("Novaland", HOSE: NVL), and the unlisted company Nova Consumer Group Joint
Stock Company ("NCG").

 

On 30 December 2022, an event of default occurred on two instruments held in
VOF's "public equities with private terms" portfolio relating to Novaland.
The Investment Manager took the appropriate steps to protect VOF's position as
a creditor and is currently in negotiations with the company to reschedule the
payments due under the instruments and improve the security package.  As a
result of the default, however, the Board has asked the Investment Manager to
change the basis on which these Novaland-related investments were valued,
 using a number of possible outcomes of the negotiations and attributing
probabilities to each.  This change of valuation basis has resulted in the
reduction in the valuation of the two instruments by USD 18.8 million as at 31
December 2022.  These two investments were valued at 30 June 2022 at a total
of USD 58.5 million and, following the most recent adjustments that have been
approved by the Audit Committee, are valued at USD 38.6 million as of 31
December 2022.

 

In addition, in April 2022 VOF made a USD 24.8 million investment in a
minority interest in Nova Consumer Group ("NCG"), a separate company in the
NovaGroup, which had expected to be listed on the Ho Chi Minh Stock Exchange
by 1 January 2023.  This investment was valued at 30 June 2022 at USD 25.2
million.  Due to adverse market conditions, NCG was unable to fulfil its
listing commitments by the agreed date and, consequently, the Investment
Manager on behalf of VOF has exercised the put option agreed at the time of
the original investment.  This put option provided that VOF could sell its
shares in NCG back to NovaGroup at cost plus a guaranteed return.  However,
as a result of the broader problems it is experiencing, NovaGroup is not in a
position to honour this obligation.  Again, the Investment Manager is taking
the necessary legal steps to secure VOF's position as a creditor but, in this
new light, the Board of VOF has concluded that a provision of USD 7.9 million
against VOF's investment in NCG is also necessary and, with this most recent
adjustment, the investment in NCG is valued at USD 17.8 million as of 31
December 2022.

 

The Investment Manager continues to actively engage with NovaGroup and its
sponsors to negotiate the recovery of these investments including the expected
returns.

 

The reductions in the valuations of the two Novaland-related instruments and
the investment in NCG totalled USD 26.7 million as at 31 December 2022 which
were approved by the Audit Committee of VOF and adjusted in the daily NAV of 3
March 2023.

 

Further information is available on the Company's website at:
https://vof.vinacapital.com/ (https://vof.vinacapital.com/)

 

Enquiries:

 

 Joel Weiden
 Investment Manager - Investor Relations and Communications

 VinaCapital Investment Management Limited
 T: +84 28 3821 9930
 E: joel.weiden@vinacapital.com

 David Benda / Hugh Jonathan
 Broker

 Numis Securities Limited
 T: +44 20 7260 1000
 E: funds@numis.com

 Magdala Mullegadoo
 Company Secretary / Administrator

 Aztec Financial Services (Guernsey) Limited
 T: +44 1481 748 814
 E: vinacapital@aztecgroup.co.uk

 Edward Livingstone-Learmonth
 Public Relations (London)

 Camarco
 T: +44 20 3757 4980
 E: edward.livingstone-learmonth@camarco.co.uk

 Will Hampsey-Cook
 Marketing and Distribution (London)
 Frostrow Capital LLP
 T: +44 (0)203 709 9281

 E: Will.Hampsey-Cook@frostrow.com

 Dion Di Miceli / Stuart Muress
 Marketing and Investor Engagement (Global)

 Barclays Bank PLC
 T: +44 207 623 2323
 E: BarclaysInvestmentCompanies@barclays.com

1.     References to VOF or the Company in this announcement shall mean
VinaCapital Vietnam Opportunity Fund Limited, a non-cellular company
incorporated in the Bailiwick of Guernsey under The Companies (Guernsey) Law,
2008, with registered number 61765. It is authorised by the Guernsey Financial
Services Commission (reference number 2268242) as a registered closed-ended
investment scheme under The Protection of Investors (Bailiwick of Guernsey)
Law, 2020 and in compliance with the Registered Collective Investment Scheme
Rules, as amended.

 

2.     The registered office address of the Company is East Wing,
Trafalgar Court, Les Banques, St Peter Port, Guernsey, Channel Islands, GY1
3PP.

 

3.     This announcement may contain inside information as stipulated
under the Market Abuse Regulations (EU) NO. 596/2014 (MAR).

 

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