Apolat Legal advises selling shareholders on transfer of equity interests in Ho Chi Minh City real estate project
Apolat Legal advises the selling shareholders of a Vietnamese real estate company in connection with the transfer of their entire equity interests in a project company developing a housing and commercial complex project in Ho Chi Minh City, with a transaction value of approximately USD 25 million. The client is a group of individual shareholders of a Vietnamese company developing a real estate project.
The transaction concerns the transfer of the sellers’ interests in a project company owning a mixed-use development project in District 12, Ho Chi Minh City. The project covers a land area of 21,109.5 square metres and has been included in the official 2023 land-use plan. Key project milestones include the execution of land transfer commitments with households and individuals, receipt of original land use right certificates, and pending approval from the Ho Chi Minh City People’s Committee for the acquisition of agricultural land for residential development purposes.
A notable feature of the matter is its legal complexity arising from existing contractual arrangements with a Hong Kong-based foreign investor that had previously financed the project. These arrangements include a business cooperation contract, a loan agreement, equity security arrangements, and a call option over the shares. As a result, the transaction requires careful structuring not only for the equity transfer itself, but also for the assignment and discharge of existing contractual obligations and liabilities.
Apolat Legal advises the sellers on the overall exit strategy, including structuring a clean transfer, negotiating with the incoming buyer and the foreign investor, and coordinating with relevant stakeholders and authorities to facilitate the transaction while preserving the viability of the underlying project.
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