Boustead Projects JV to acquire Minh Quang for $14.4m

The JV will acquire 3,300,000 ordinary shares of the Vietnamese company.

KTG & Boustead Industrial Logistics Joint Stock Company (KBIL), a joint venture of Boustead Projects Limited, will acquire all the issued and paid-up shares of Vietnam-based Minh Quang Industrial Development Joint Stock Company for $14.4m (VND261.9b).

The consideration for the purchase of sales shares is based on the agreed property value of the land of $28.9m (VND527b).

KBIL will fund the acquisition by way of issuance of equity to Boustead Projects and KTG in proportion to their respective shareholding ratio in KBIL. 

Boustead Projects, through its wholly-owned subsidiary BP-Vietnam Development, has agreed to subscribe for such a number of shares at the aggregate subscription price of $7.0m (VND128.3b), representing 49% of the purchase consideration.

KBIL intends to develop 136,450 square metres of land in Yen Phong District, Bac Ninh Province, Vietnam, which Minh Quang has previously signed an in-principle land lease agreement with a master developer.

KBIL will develop the land for industrial facilities for lease.

The land will be handed over by the master developer to Minh Quang from the second half of 2024 onwards, with phased construction able to commence thereafter.  The land has a land tenure of about 45 years to 2069.