GuocoLand to exit Vietnam, sell subsidiaries for 656.09b dong

GUOCOLAND has proposed to sell its subsidiaries in Vietnam for some 656.09 billion dong (S$38.3 million), after which the luxury property developer will no longer have business operations in the country.

The mainboard-listed company on Wednesday evening said its wholly-owned subsidiary GuocoLand Vietnam (S) Pte Ltd (GLVS) is planning to sell the entire charter capital of GuocoLand Vietnam Company Limited (GVC) to Hang Vay Chi, Vuong Hoa and TT Investment Company. The parties have inked a sale and purchase agreement.

GVC, a holding company, owns all the capital contribution in GuocoLand Binh Duong Property Co Ltd (GLBD), the property developer of The Canary just outside Ho Chi Minh City.

The Canary is an integrated development sitting on a 17.5 hectare site, next to the Vietnam Singapore Industrial Park in Binh Duong province. GuocoLand's website states that the project includes some 1,051 apartments, a mall and an office tower.

On Wednesday, GuocoLand said GLBD has completed and sold all the residential units in Homez@The Canary and Canary Heights. GLBD also owns some plots of land for future development.

The 656.09 billion dong sale price for the subsidiaries includes cash and cash equivalents in GVC and GLBD amounting to about 222.64 billion dong, which is subject to adjustments in accordance with the sale and purchase agreement.

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GuocoLand noted that the price was arrived at after arm's length negotiations, taking into account the net asset value in GVC and GLBD totalling about 342.12 billion dong.

It will be paid in cash in tranches, with the final payment to be made at the completion of the transaction, which is expected to take place by April 2021.

Completion of the transaction is conditional upon conditions precedent being fulfilled and subject to government and regulatory approvals, waivers and consents in Vietnam.

Both GVC and GLBC will cease to be subsidiaries of GuocoLand and GLVS after the deal is completed.

GuocoLand shares last traded at S$1.53 on Wednesday, before the announcement.