CapitaLand buys additional 20% stake in CTD

CAPITALAND Limited's wholly owned subsidiary, CLV Investment 5 Limited, has acquired an additional 20 per cent stake on Monday in CapitaLand-Thien Duc Company Limited (CTD) for US$17.9 million.

CTD is a company incorporated in Vietnam from a party unrelated to CapitaLand. It is now a 50 per cent owned associated company of CapitaLand.

Prior to the acquisition, CapitaLand held a 30 per cent stake 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, CapitaLand said.

The deal 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 based on the management accounts of CTD as of Dec 31, 2016 and other commercial considerations.

According to 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 Dec 31, 2017.