Boustead Projects’ has announced the proposed acquisition of all the issued and paid-up shares of Minh Quang Industrial Development Joint Stock Company by its joint venture KTG & Boustead Industrial Logistics Joint Stock Company (KBIL).
On Dec 12, KBIL entered into a sale and purchase agreement for the acquisition of 3.3 million ordinary shares in Minh Quang for VND261.9 billion or US$10.7 million ($14.3 million).
KBIL intends to develop a land lot with an approximate area of 136,450 sqm in Bac Ninh Province, Vietnam that will be handed over to Minh Quang from the second half of 2024 onwards.
The land, which KBIL will turn into industrial facilities for lease, has a land tenure of about 45 years to 2069.
According to Boustead Projects , Vietnam continues to stand out as one of the world’s fastest growing economies, with a proven track record in offering multinational corporations the ideal business environment for investment, manufacturing operations and logistics networks.
Given its strategic location and long-term growth factors, the company believes the injection of Minh Quang’s land into KBIL aligns with its prudent expansion strategy and will strengthen its presence in the key market of Vietnam.
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As of Oct 13, the land was valued at some VND516.4 billion or US$21.8 million.
The purchase consideration will be funded by KBIL by way of issuance of equity to Boustead Projects and KTG in the proportion of their respective shareholding ratio in KBIL.
Boustead Projects, through its wholly-owned subsidiary BP-Vietnam Development Pte Ltd, has agreed to subscribe for the representative number of shares at the aggregate subscription price of VND128.3 billion or US$5.2 million, representing 49% of the purchase consideration.
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On Nov 20, Boustead Singapore F9D finalised its exit offer of $1.18 per share to shareholders of Boustead Projects, which will be delisted from the Singapore Exchange S68 Securities Trading (SGX-ST) upon completion of the offer.
Shares in Boustead Projects last traded at 95.5 cents, while shares in Boustead Singapore closed 0.5 cents lower or 0.59% down at 85 cents on Dec 12.
