The Company has been in discussions with VIDIFI JSC, a company belonging to the Vietnamese Ministry of Transport that owns and operates a 105-km toll road BOT project from Hanoi to Hai Phong City (the main port in Northern Vietnam). Currently the daily toll collections are approximately USD 400,000. This company has been granted 2,500 hectares of land along the toll road from Hanoi to Hai Phong City for construction of urban centers and industrial zones, which could be worth several billion US dollars upon completion.
A joint venture between PHI Group, Inc. and a local Vietnamese company, has proposed to acquire at least 85% ownership in VIDFI, restructure the loan portfolio and develop the 2,500 hectares of land that has been granted to VIDIFI. The joint venture company intends to raise USD 1.5 to USD 2 billion for the purchase of equity interest in VIDIFI and repayment of bank loans still owed by VIDIFI.
The joint venture company is currently engaging a prominent international law firm to conduct the due diligence of VIDIFI. There are two major international institutions that have shown interest and commitment in providing the funds for this transaction, subject to satisfactory due diligence results.