Conditional disposal of the Peninsula land (2276H)

TIDMJSM

RNS Number : 2276H

JSM Indochina Ltd

25 May 2011

JSM Indochina Ltd.

25 May 2011

Conditional disposal of the Peninsula land use rights, Vietnam

Further to the announcement of 6 May 2011, the Board of JSM Indochina Ltd. ("JSM" or the "Company") (AIM: JSM.L), is pleased to announce that they have signed the Peninsula land use rights agreement ("LUR Agreement") to transfer the Peninsula land use rights to Sao Sang Saigon Joint Stock Company (the "Purchaser") (the "Transaction"). The Purchaser is an affiliate of Nam A Bank.

The gross consideration payable for the Peninsula land use rights is US$11,000,000 (the "Consideration") to be paid in Vietnamese Dong at the selling exchange rate announced by Vietcombank on 24 May 2011, being VND 20720/USD1 totalling VND227,920,000,000.

A deposit of 20% of the Consideration was paid to the bank account of QSpace and Promise Land and converted into $2.2 million on 6 May 2011.

As of today, together with the 20% deposit, the Purchaser has paid a total of 90% of the Consideration to QSpace and Promise Land being VND 205,128,000,000 which in part was converted into a total of $6.4 million (being $2.2 million upon payment of the deposit and another $4.2 million at the exchange rate of VND20,680 on 24 May 2011) and had been used to repay part of QSpace's $21,000,000 loan facility with United Overseas Bank (the "Loan Facility"). The balance of VND 72,622,000,000 (equivalent to $3.5 million) shall be held in Vietnamese Dong until Completion. The Purchaser has provided QSpace and Promise Land with a letter of guarantee for the remaining 10% of the Consideration, which will be paid to QSpace and Promise Land when the Purchaser receives the Peninsula land use rights certificates confirming the Purchaser as the legal land user. Completion of the Transaction is expected to occur by the end of June 2011.

On completion of the Transaction, the balance of the Consideration will be used to repay part of QSpace's Loan Facility. The balance of the Loan Facility will be repaid from the $21,537,545 cash pledge with United Overseas Bank (the "Pledge") held by a JSM subsidiary, and the balance of the Pledge will be approximately $6.3 million, after settlement of tax liabilities and other costs associated with the Transaction, the UOB loan and other related matters.

CBRE acted for JSM.

Scott Verges, Chairman of JSM Indochina Ltd. commented:

"We are very pleased to be able to announce the signing of the LUR Agreement relating to the conditional disposal of Peninsula to Sao Sang Saigon Joint Stock Company. As per our previous announcements regarding the disposal of the Cambodian portfolio, the Board continues to consider the options available to deal with the Company's subsidiaries, after finalising the corporate tax position from JSM's subsidiaries. We will provide an update on a return of capital in due course after the Board takes into account appropriate reserves for later distribution."

For further information:

 
 JSM Indochina Ltd.               +1 415 400 2461 
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 Scott Verges, Chairman 
==============================  ================= 
 
 Panmure Gordon (UK) Limited     +44 20 7459 3600 
==============================  ================= 
 Edward Farmer / Andrew Potts 
==============================  ================= 
 
 CBRE 
==============================  ================= 
 David Simister                     +66 2654 1111 
==============================  ================= 
 Marc Townsend                     +84 83824 6125 
==============================  ================= 
 
 Buchanan Communications         +44 20 7466 5000 
==============================  ================= 
 Lisa Baderoon 
==============================  =================

This information is provided by RNS

The company news service from the London Stock Exchange

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