The Mekong Enterprise Fund II will invest an additional 6.3mio US$ in the Dong Nai-based Ngo Han Joint Stock Company.
The fund, the second begun by management company Mekong Capital, has already invested 1.91mio US$ in Ngo Han.
The Mekong Enterprise Fund II expects to increase its investments when the 30% cap on foreign ownership in unlisted companies is lifted.
The company's previous Mekong Enterprise Fund I (now fully invested and closed) had invested 1.9mio US$ in Ngo Han Joint-Stock Company, one of the most successful of all of its investments, in early 2004.
Ngo Thi Thong, chairwoman of Ngo Han, said: "This additional investment will greatly help our company grow more quickly and become more effective."
Chris Freund, Mekong Capital's managing director, said: "Since our first fund's investment in Ngo Han in early 2004, its revenues have grown 57% annually over the past three years, while net profit has grown 60% per annum. This has been an excellent investment for us and we expect the strong growth to continues to expand capacity and strengthen its management team."
Ngo Han is one of the largest manufactures of magnet wire in Viet Nam, with 35mio US$ turnover in 2006. It is making preparations to list on the stock market next year.
The 50mio US$ million Mekong Enterprise Fund II is a private equity fund focusing on equity investments in unlisted companies in Viet Nam, which at the time of the original investment are typically about two to four years away from listing on one of the country's two stock exchanges.
Ngo Han is the second investment of Mekong Enterprise Fund II.
Source: VNA
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