February 28, 2018
Ho Chi Minh City, Vietnam – The Board of Directors (the Board) of Vietnam Equity Holding (the Company, VEH) hereby announces the appointment of Clemens Zankel to the Board.
In 2017 Mr. Zankel began communicating informally with the Company’s Investment Manager, declaring he was a major shareholder of VEH. Only recently did he provide proof to the Board that he controls nearly 50% of the issued and outstanding shareholdings of the Company. The positions he controls are held in various custodial accounts and the concentrated control was previously unknown to the Board.
Mr. Zankel has informed the Board that he wishes to appoint his own Board and has submitted a requisition for an Extraordinary General Meeting (EGM) to obtain that result.
The Independent Directors, Dr. Lee G. Lam, Dr. Kathryn Vagneur and Dr. Howard Golden, JuDr. believe it would not serve the interests of the Company’s shareholders to incur the costs of calling an EGM. Based on the attendance history at previous AGMs and EGMs, the Independent Directors have concluded that at any shareholder meeting the shareholdings controlled by Mr. Zankel would comprise the clear majority of those present and would effectively control all decisions taken at such a meeting.
In view of the significant shareholdings controlled by Mr. Zankel in the Company’s outstanding and issued shares, the best interests of the shareholders of the Company would be better served if the Independent Directors resign and allow Mr. Zankel to co-opt the directors he wishes to appoint.
Accordingly, Dr. Lee G. Lam, Dr. Kathryn Vagneur and Dr. Howard Golden, JuDr. have tendered their resignations as directors to the Board (Mr. Zankel and Mr. Louis Nguyen) with immediate effect.
Saigon Asset Management
Sunwah Tower, 7th Floor
115 Nguyen Hue Blvd, District 1
Ho Chi Minh City, Vietnam