VNI : Vietnam Infrastructure restructuring details
Following conversations with its major shareholders, Vietnam Infrastructure is putting forward proposals to shareholders. The proposals involve splitting the fund into two parts – one representing the private equity, unlisted investments (currently about $108m) and the other the listed investments (currently about $117m). the listed investment pool would be devolved into a new listed investment company. This investment company would invest all of its assets into a new open ended fund, provisionally to be called the VCG Partners Vietnam Fund (“VVF”), with a broad Vietnam investment strategy focused on listed equities.
Shareholders in the listed portfolio get three chances to convert their shares into units in VVF – the first 21 days after admission, up to a third of the fund at a 4% discount to NAV; the second six months after this first chance, up to 50% of the remaining assets at a 2% discount to NAV; and the third six months after that, all of the balance, at NAV.
VVF units would be redeemable twice a month at NAV.
For the private equity pool, the manager would aim to turn the portfolio into cash over time with a target end date of June 2017. Shareholders would get the chance to get the proceeds of sales in cash or in units of VVF.
There would be no more fees charged by the manager to the listed pool but they would get a management fee of 1.5% of the assets of VVF.
The manager would get an incentive fee of 10% of the proceeds of disposals from the private equity pool above 75% of their book value at 30 June 2014.
Paul Garnett of Ironsides Partners is joining the Vietnam Infrastructure Board