Gamuda completes acquisition of Vietnamese company

KUALA LUMPUR: Gamuda Bhd has completed its acquisition of Vietnamese Sai Gon Thuong Tin Tan Thang Investment Real Estate Joint Stock Company (Tan Thang), and has become a 60% subsidiary of Gamuda Land (HCMC) Sdn Bhd.

In a filing with Bursa dated March 10, 2010 the company announced that Gamuda Land was eyeing equity interest in Tan Thang company comprising of 64.2 million ordinary shares of Vietnamese Dong (VND) 10,000 (RM1.59) each from Vietnam-based Sacomreal for a total cash consideration equivalent to US$82.8 million (RM257 million).

Gamuda Land (HCMC) said it would fund its share of equity participation in Tan Thang Company by using internally generated funds and/or bank borrowings. The company said that the prospects for property development activities in Vietnam are positive.

Upon the completion of the acquisition, the equity of Tan Thang will be divided between Gamuda (HCMC), which would own 60%; Sacomreal, which would own 30%; and a Vietnam national, Chau Kim Yen, would own the remaining 10%.

Tan Thang has the rights for the investment and construction of a parcel of land located at Son Ky Ward, Tan Phu District, Ho Chi Minh City, Vietnam measuring approximately 825,216.5 sq m into a project known as Tan Thang residential, sports and educational complex.

The project is expected to generate a gross development value (GDV) of RM6 billion. The first sales launch is expected to commence in the second half of this year and over a seven-year period.

“The Project will enable Gamuda to strengthen its position in the property development industry in Vietnam,” it added.