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Frasers Property unit to acquire 75% stake in Vietnamese property firm for 409b dong

A SUBSIDIARY of Frasers Property on Friday entered into a conditional share purchase agreement with Tran Thai Lands Company to acquire a 75 per cent stake in Vietnamese property firm Phu An Khang Real Estate Joint Stock Company (PAK).

The unit - Frasers Property Investments (Vietnam) 1- is set to acquire the 24 million ordinary share stake in PAK for 408.6 billion dong (S$23.9 million).

The consideration was arrived at on a willing buyer, willing seller basis. It will be fully satisfied in cash and will be funded by the group's internal cash resources and/or external bank borrowings, Frasers said.

When the sale is finalised, Frasers said it intends for PAK to undertake the development of a residential-cum-commercial project on a mixed-use development plot in District 2 in Ho Chi Minh City which is to be held by PAK.

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If the proposed acquisition is completed successfully, PAK will become a subsidiary of Frasers.

Its shares finished S$0.01 or 0.5 per cent down at S$2 on Friday.