London-listed Indochina Capital fund has completed talks over acquisition of a 20% stake in local fruit processor Vinamit in the Ho Chi Minh City, taking its first step into the agriculture sector.
Peter Ryder, director of Indochina Capital attributed the investment choice to Vinamit’s impressive business strategy and the inherent potential of Vietnam’s agriculture sector.
The official signing of the agreement is scheduled to take place on May 25 in HCMC, but the value of the deal was not immediately available.
This will be the second investment in Vietnam for the newly-established US$500 million Capital Vietnam Holdings, listed with the ticker symbol ICV on the London Stock Exchange.
Its first investment came in a contract sealed last month to pick up a 15% stake in the telecom cable firm Viet Han Corp in central Quang Nam Province.
Capital Vietnam Holdings will assist the fruit processing firm in developing a business strategy and in seeking strategic partners.
Particularly, via Indochina Capital’s Mekong Securities arm, it will also offer consulting services for Vinamit’s listing on the local stock exchange, which is set for the first half of next year.
Vinamit is known as the country’s largest fruit processing firm with 60% of its annual revenue from export to China mainland, Malaysia, Singapore, Taiwan, Hong Kong, the EU and Japan.
In the domestic market, Vinamit products made from Vietnamese jack fruit, banana, guava, mango and sweet potato take up the lion’s share of 90%.
Indochina Capital Vietnam Holdings, which is structured as a closed-end investment company, isn’t just investing in equities listed on the Ho Chi Minh stock exchange and over-the-counter stocks.
It will also look at private equity and potentially some derivatives and debt securities. And it can also invest in non-Vietnamese companies which have a material portion of their business or assets in Vietnam.
Indochina Capital is among Vietnam’s most established investment firms and innovative leaders in the growing financial market.
It manages Vietnam-focused funds with two distinct strategies in real estate and the capital markets including Indochina Capital Vietnam Holdings; Indochina Land Holdings; Indochina Land Holdings 2; Mekong Securities; and Indochina Capital Advisory and Finance.
Indochina has invested in real estate in Vietnam for the past 15 years, having developed or financed projects worth more than $1 billion including offices, apartments and hotels.
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