Perth-based Vietnam Industrial Investments Ltd expects to receive around $14.6 million for the sale of its concrete-reinforcing steel bar producing subsidiaries Ssesteel Ltd and 70 per cent owned Vinausteel Ltd - up $1.5 million from its previous expectations.
That said, the company said in an ASX announcement that the actual sale amount may be higher or lower depending on a number of factors, including Vinausteel and SSESTEEL being debt free and a minimum net working capital and tangible fixed asset value.
The figure is also net of consultant's fees, and will involve around $3.1 million of the total paid to be held in escrow pending recovery of certain receivables.
The company announced it would sell the stakes to Tata Steel subsidiary NatSteel Asia in March this year.
VII will retain its 67 per cent stake in roofing and wall cladding producer Austnam Joint Stock Corporation, 97 per cent holding in building systems provider Total BuildingSystems Ltd and total ownership of weldmesh company VRC Weldmesh (Vietnam) Ltd.
The full text of a comapny announcement is pasted below
As announced on 7 March 2007, the Company has entered into a sale and purchase agreement under which it has agreed to sell its 70% interest in Vinausteel Ltd ("Vinausteel") and 100% interest in SSESTEEL Ltd ("SSESTEEL") to NatSteel Asia Pte Ltd, a wholly
owned subsidiary of Tata Steel.
Based on the Company's unaudited management accounts as at 31 March 2007, the Company expects that the amount it will be paid following completion, net of consultant's fees, will be approximately US$12.02 million.
This is an increase of US$1.22 million on the net purchase price previously announced.
However, the actual amount may be higher or lower depending on a number of factors, including Vinausteel and SSESTEEL being debt free and a minimum net working capital and tangible fixed asset value.
This will be determined following a post completion audit.The expected amount of US$12.02 million includes approximately US$2.59 million which will be held in escrow pending recovery of certain receivables and finalisation of tax matters and this could further reduce the net purchase consideration.