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Published on Thursday, 3 May 2007

Sale of Rolling Mills - Update on Net Purchase Consideration

Sale of Rolling Mills - Update on Net Purchase Consideration

A.C.N. 063 656 333
A.B.N. 64 063 656 333
VIETNAM INDUSTRIAL INVESTMENTS LIMITED

3 May 2007

 

Company Announcements
Australian Stock Exchange Limited
10th Floor
Bond Street
SYDNEY NSW 2000

Dear Sirs

SALE OF ROLLING MILLS – UPDATE ON NET PURCHASE CONSIDERATION

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.

Yours faithfully

 

SIMON LEE AO
Chairman

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