CapitaLand Limited has increased its stake in CapitaLand-Thien Duc Company Limited (CTD), after its wholly owned subsidiary, CLV Investment 5 Limited, acquired a 20 percent stake in the Vietnam incorporated company for US$17.9 million (S$25.4 million).
CTD holds a mixed use development in Ho Chi Minh City known as Vista Verde which features 1,152 residential units. It also owns two land plots within the vicinity of Vista Verde which will be developed into high-rise residential units and landed shop houses.
In a release, CapitaLand revealed that the acquisition is consistent with its “strategy to increase its residential development portfolio in Vietnam”.
It added that the consideration was “arrived at on a willing-buyer and willing-seller basis, taking into account the adjusted net tangible asset value of the acquired interest of US$17.9 million (S$25.4 million) based on the management accounts of CTD as of 31 December 2016 and other commercial considerations”.
With CapitaLand previously holding a 30 percent stake in CTD, the latter will become a 50 percent owned associated company of CapitaLand after the acquisition.
CapitaLand does not expect the acquisition to materially affect the group’s net tangible assets or earnings per share for the financial year ending 31 December 2017.
Christopher Chitty, Senior Content Specialist, edited this story.
