Frasers Property scraps plan to acquire Vietnam property development company

MULTINATIONAL property company Frasers Property TQ5 : TQ5 0%announced that it has cancelled plans to acquire a majority stake in Vietnam property development company Phu An Dien Real Estate Joint Stock Company (PAD).

The agreement, announced on Jul 12, 2018, saw Frasers Property subsidiary, Frasers Property Investments (Vietnam) 2 (FPIV2), sign a conditional share purchase agreement with Tran Thai Lands Company to acquire 45 million shares worth 799 billion dong (S$47.3 million), or 75 per cent stake, in PAD.

In a late-night bourse filing on Tuesday (Nov 23), Frasers Property said the conditions precedent for the completion of the proposed acquisition have not been fulfilled by the long-stop date agreed by the parties. Both sides have mutually agreed to terminate the proposed acquisition.

Tran Thai has on the same date refunded and released from escrow, in full, all amounts paid by FPIV2 under the agreement in connection with the proposed acquisition, and an "agreed amount" towards reimbursement of expenses incurred.

Frasers Property said the termination of the agreement is not expected to have a material effect on the net tangible assets or earnings per share of the group for the current financial year.

Shares of Frasers Property were trading 0.9 per cent or S$0.01 higher at S$1.16 as at 10.05 am on Nov 24.

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