Another twist for Vietnam Holding’s shareholders – After news that it is changing its investment agreement with its existing investment manager, its intention to acquire the assets of another Vietnamese listed equity fund (click here for more) and the resignation of fund manager, Vu Quang Thinh (click here for more), shareholders of VietNam Holding (VNH) have found out that there is another fund merger proposal in the mix.
This time, however, VNH is the target and PXP Vietnam Emerging Equity Fund (an open-ended Fund) is the proposed acquirer. Also, VNH had received the approach from PXP on 27th April, before shareholders were told by VNH’s about its plans to acquire the assets of Vietnam Equity Holding.
The board of PXP Vietnam Emerging Equity Fund have made their announcement as the board of VNH have neither engaged with them over their proposal, nor have shareholders of VNH been informed:
- PXP propose a share exchange offer to be effected by means of a Cayman merger scheme on the basis of the relative NAVs of PXP Vietnam Emerging Equity Fund and VNH at the transaction date.
- PXP propose that the share exchange be conducted on the basis of one share at NAV in exchange for the relevant number of VNH shares at a discount of 7.5% to its NAV on the transaction date
- The 7.5% discount is compared to the one year average discount to NAV of VNH shares of approximately 14.7% and an average discount to NAV of 16.0% over 3 years on 17 May 2018.
The board of the PXP fund believe that its proposals offers a more attractive opportunity for VNH shareholders to maintain exposure to the Vietnam stock market whilst also being able to sell their shares at par to NAV twice a month (plus redemption fee)
VNH : Another twist for Vietnam Holding’s shareholders