Investment funds are now eyeing wooden furniture companies’ shares since the wooden furniture processing industry proves to be the one which has seen the highest growth rate in the last few years.
According to the Ministry of Trade, Vietnam-made wooden furniture products are present in 120 countries throughout the world. 28% of exports go to Europe, 24% to Japan, and 20% to the US.
Tran Quoc Manh, Deputy Chairman of the HCM City Fine Arts and Wooden Furniture Processors’ Association, and Director of Sadaco, said that the industry had been witnessing the growth rate of 40-50% per annum in the last few years. Vietnamese companies can export products directly and not go through third parties.
“It is the right time for investment funds to inject money in wooden furniture companies, which have a high growth rate and low risk,” Mr Manh said.
Sadaco, for example, has signed a cooperation agreement with VinaCapital, while another fund is also seeking to buy Sadaco shares.
In February 2007, Aureos decided to make a $3mil investment in Truong Thanh Wooden Furniture Industrial Company to become the biggest strategic shareholder. Truong Thanh later received a lot of other offers from both domestic and foreign funds, including VinaCapital, Indochina Capital and Bao Viet Securities.
Truong Thanh had the total turnover of VND170bil 9$10.62mil) in 2005, and the figure rose to VND326bil ($20.37mil) in 2006. In the first quarter of 2007 alone, the turnover was VND173bil ($10.81mil).
The Denmark-based Penm has also signed an agreement on strategic cooperation with the Duc Thanh Wooden Furniture Processing Company. The deal was inked just two days after the fund set up a representative office in HCM City.
Prior to that, Duc Thanh had a foreign strategic shareholder, Mekong Enterprise Fund Ltd.
The Thuan An Wooden Furniture Processing Company, which is going to list on the bourse in June, has reported that the company has signed an agreement on investment in the company with two foreign based funds.
Source: VNE
Showing posts with label Mekong Capital. Show all posts
Showing posts with label Mekong Capital. Show all posts
Thursday, June 07, 2007
Monday, May 28, 2007
70 investment funds queue to enter Vietnam
Vietnam’s stock market can bring super profit, and that explains why foreign investment funds are pouring their money into Vietnam’s stocks.
Investors whisper in each other’s ears that investment funds earned super profit in Vietnam last year. Two funds gave investors the profit of 140%. Another fund, which injected money in real estate, did not gain such a fat profit, but the profit proved to be also very encouraging, at 60%.
The fat profit Vietnam can bring to investors has encouraged them to come to Vietnam. The figure released at a workshop late last week may shock everyone: 70 foreign investment funds are waiting to join the market.
There is no exact figure about portfolio investment in Vietnam, as the OTC market is out of the State’s control. However, it is clear that the three biggest investment funds on the market now hold nearly $4bil. Dragon Capital is managing some $1.5bil, VinaCapital $1.3bil and Indochina Capital $1bil. VinaCapital has wrapped up a visit to the world’s financial centres to raise $250-300mil.
A series of domestic based funds have also been set up recently. The Phu Lan Fund Management Company has set up a new fund, called Lion Capital. Louis Nguyen, Phu Lan director, said that the company was planning to raise $200mil of funds from domestic and foreign investors in America, Asia and Europe, which will be injected in 10 projects.
The beyond-expectation growth of the three funds has promoted other investment funds to join Vietnam’s market. Mekong Capital has wrapped up the raising of $100mil for its third fund, called Azalea Fund. Mekong’s first fund had only $18.5mil in capital, while the second had $50mil, and the third is two times bigger than the second one.
In the last few years, an investment deal of Mekong Capital was just valued at several hundred thousands dollars, but now the fund has to inject 5-6mil in every deal. The fast developing stock market has made the value of private enterprises skyrocket, and Mekong Capital has to pay high to be eligible to become a strategic shareholder in local companies.
After Azalea Fund, a series of funds are waiting for operation licences from the State Securities Commission. These include one Japanese owned fund, estimated to have $200mil in capital. Chinese and Hong Kong financial institutions have landed in Vietnam, setting up financial consultation firms.
Investment funds are all getting ready for the auctions of big companies’ shares to be held with their equitisation in the coming time. It is expected that some $2bil more will be injected in Vietnam in 2007.
Director of a fund management company said that most investment funds were making investment in shares of listing companies and OTC shares. Meanwhile, injecting money in the real estate sector proves to be the second choice of investment funds, though this is a long-term investment.
BankInvest, which only injects money in private enterprises, has announced investment in two initial projects, AAA insurance and Duc Thanh Wood Processing Company.
Having been present in Vietnam for a long time, Mekong Capital has invested in 12 companies, including big names like Tan Dai Hung plastics, Ngo Han electromagnetic wire, Minh Hoang garment, Saigon Gas, Lac Viet IT. Especially, Ngo Han two times has received investment, once in April 2005 ($1.85mil), and once in January 2007 ($1.91mil).
Source: VNE
Investors whisper in each other’s ears that investment funds earned super profit in Vietnam last year. Two funds gave investors the profit of 140%. Another fund, which injected money in real estate, did not gain such a fat profit, but the profit proved to be also very encouraging, at 60%.
The fat profit Vietnam can bring to investors has encouraged them to come to Vietnam. The figure released at a workshop late last week may shock everyone: 70 foreign investment funds are waiting to join the market.
There is no exact figure about portfolio investment in Vietnam, as the OTC market is out of the State’s control. However, it is clear that the three biggest investment funds on the market now hold nearly $4bil. Dragon Capital is managing some $1.5bil, VinaCapital $1.3bil and Indochina Capital $1bil. VinaCapital has wrapped up a visit to the world’s financial centres to raise $250-300mil.
A series of domestic based funds have also been set up recently. The Phu Lan Fund Management Company has set up a new fund, called Lion Capital. Louis Nguyen, Phu Lan director, said that the company was planning to raise $200mil of funds from domestic and foreign investors in America, Asia and Europe, which will be injected in 10 projects.
The beyond-expectation growth of the three funds has promoted other investment funds to join Vietnam’s market. Mekong Capital has wrapped up the raising of $100mil for its third fund, called Azalea Fund. Mekong’s first fund had only $18.5mil in capital, while the second had $50mil, and the third is two times bigger than the second one.
In the last few years, an investment deal of Mekong Capital was just valued at several hundred thousands dollars, but now the fund has to inject 5-6mil in every deal. The fast developing stock market has made the value of private enterprises skyrocket, and Mekong Capital has to pay high to be eligible to become a strategic shareholder in local companies.
After Azalea Fund, a series of funds are waiting for operation licences from the State Securities Commission. These include one Japanese owned fund, estimated to have $200mil in capital. Chinese and Hong Kong financial institutions have landed in Vietnam, setting up financial consultation firms.
Investment funds are all getting ready for the auctions of big companies’ shares to be held with their equitisation in the coming time. It is expected that some $2bil more will be injected in Vietnam in 2007.
Director of a fund management company said that most investment funds were making investment in shares of listing companies and OTC shares. Meanwhile, injecting money in the real estate sector proves to be the second choice of investment funds, though this is a long-term investment.
BankInvest, which only injects money in private enterprises, has announced investment in two initial projects, AAA insurance and Duc Thanh Wood Processing Company.
Having been present in Vietnam for a long time, Mekong Capital has invested in 12 companies, including big names like Tan Dai Hung plastics, Ngo Han electromagnetic wire, Minh Hoang garment, Saigon Gas, Lac Viet IT. Especially, Ngo Han two times has received investment, once in April 2005 ($1.85mil), and once in January 2007 ($1.91mil).
Source: VNE
Saturday, May 26, 2007
Mekong Capital invests in Mobile Phone World
Mekong Capital will pump 4.5 million USD into national retail chain Mobile Phone World, announced Mekong Capital General Director Chris Freund, on May 25.
“We are pleased to utilise our Mekong Enterprise Fund II to invest in Mobile Phone World. This is one of the most impressive companies that we have had contact with in Viet Nam, based on the strategic vision of their management staff and their capacity to implement its plan,” said General Director Chris Freund.
The 50 million USD Mekong Enterprise Fund II was established to scout out unlisted companies and well run private companies that retain a high potential for growth.
Director of Mobile Phone World Nguyen Duc Tai said the company has been able to create a supermarket system after two years of operations that has seen the firm record the highest cell phone unit sales in the country.
Source: VNA
“We are pleased to utilise our Mekong Enterprise Fund II to invest in Mobile Phone World. This is one of the most impressive companies that we have had contact with in Viet Nam, based on the strategic vision of their management staff and their capacity to implement its plan,” said General Director Chris Freund.
The 50 million USD Mekong Enterprise Fund II was established to scout out unlisted companies and well run private companies that retain a high potential for growth.
Director of Mobile Phone World Nguyen Duc Tai said the company has been able to create a supermarket system after two years of operations that has seen the firm record the highest cell phone unit sales in the country.
Source: VNA
Foreign owned accounts at securities companies on the rise
More and more foreign investors have decided to make money on Vietnam’s stock market. Statistics show that the number of foreign owned accounts opened at securities companies is increasing.
According to the HCM City Securities Trading Centre (HSTC), nearly 5,000 foreign owned individual accounts have been opened at HSTC member securities companies. The owners of the accounts mostly are Japanese, Korean, Taiwanese and Singaporean. The largest number of foreign investors on Vietnam’s stock market proves to come from Japan.
Nguyen Hong Nam, Deputy Director General of the Saigon Securities Incorporated (SSI), said that some 2,000 foreigners’ accounts had been opened at SSI, 70% of which are Japanese owned.
BVSC, DVSC and Rong Viet all have reported an increased number of new foreign individual accounts, which account for 30% of the new accounts. Experts said that the new wave of foreign investment had been refreshing the stock market.
Vietnam’s stock market has become attractive in the eyes of foreign investors. Vietnam’s national economy is performing well, while the stock market is developing, which promises more profitable investment deals than developed markets.
In fact, the profit made by foreign securities investors in Vietnam has been increasing considerably. In his recent visit to Vietnam, John Stuttard, the Lord Mayor of the City of London, said that the gigantic development of the stock market had caught the special attention of British financial investors.
Nguyen Chi Trung, Director of the Brokerage Division under the Rong Viet Securities Company, said that if foreign investors kept trading as currently, the stock market would rally. Now, foreign investment funds are increasing their demand for securities, and they are especially targeting the IPOs of many big banks and corporations scheduled for the coming time.
VinaCapital said that it had estimated the sum of money to be disbursed, and has given a forecast about the auctioning price of Bao Viet shares. Mekong Capital has presented its third fund before the public, the $100mil Vietnam Azalea, which will focus on equitised companies in Vietnam. Mekong hopes to close the fund soon and begin the investment period, expected for the end of May.
Experts said that the demand of foreign investors was increasing. However, they will have to restructure their investment portfolios and look for new commodities, as there is no more room for foreign ownership in big companies like REE, SAM, STB and VNM.
Source: VNE
According to the HCM City Securities Trading Centre (HSTC), nearly 5,000 foreign owned individual accounts have been opened at HSTC member securities companies. The owners of the accounts mostly are Japanese, Korean, Taiwanese and Singaporean. The largest number of foreign investors on Vietnam’s stock market proves to come from Japan.
Nguyen Hong Nam, Deputy Director General of the Saigon Securities Incorporated (SSI), said that some 2,000 foreigners’ accounts had been opened at SSI, 70% of which are Japanese owned.
BVSC, DVSC and Rong Viet all have reported an increased number of new foreign individual accounts, which account for 30% of the new accounts. Experts said that the new wave of foreign investment had been refreshing the stock market.
Vietnam’s stock market has become attractive in the eyes of foreign investors. Vietnam’s national economy is performing well, while the stock market is developing, which promises more profitable investment deals than developed markets.
In fact, the profit made by foreign securities investors in Vietnam has been increasing considerably. In his recent visit to Vietnam, John Stuttard, the Lord Mayor of the City of London, said that the gigantic development of the stock market had caught the special attention of British financial investors.
Nguyen Chi Trung, Director of the Brokerage Division under the Rong Viet Securities Company, said that if foreign investors kept trading as currently, the stock market would rally. Now, foreign investment funds are increasing their demand for securities, and they are especially targeting the IPOs of many big banks and corporations scheduled for the coming time.
VinaCapital said that it had estimated the sum of money to be disbursed, and has given a forecast about the auctioning price of Bao Viet shares. Mekong Capital has presented its third fund before the public, the $100mil Vietnam Azalea, which will focus on equitised companies in Vietnam. Mekong hopes to close the fund soon and begin the investment period, expected for the end of May.
Experts said that the demand of foreign investors was increasing. However, they will have to restructure their investment portfolios and look for new commodities, as there is no more room for foreign ownership in big companies like REE, SAM, STB and VNM.
Source: VNE
Thursday, May 17, 2007
Mekong Capital launches fund to invest in privatized SOE
Mekong Capital – a Vietnam-focused fund manager – is launching a US$100 million fund to invest in state-run companies being converted into shareholder-owned concerns.
The Vietnam Azalea Fund is expected to close by the end of this month.
The fund, with an operational period of 10 to 15 years, will invest in firms that are set to list with the keen interest in those in the primary stages of going public, according to its website.
It says the new fund’s strategy aims at companies around one to tow years prior to listing.
The near-term target of the fund will be the forthcoming initial public offerings by giant state-run corporations like Vietcombank, BIDV, Saigon Beverage Corp. and Hanoi Beverage Corp set in the last two quarter of the year.
Mekong Capital, established in 2001 by individuals both in Vietnam and internationally, manages the Mekong Enterprise Fund, a private equity fund launched in April 2002, and the Mekong Enterprise Fund II, a private equity fund launched in June 2006.
The Vietnam Azalea Fund differs from the Mekong Enterprise Fund and Mekong Enterprise Fund II, which focus primarily on private companies which were never under state ownership.
The private equity funds focus on investing in unlisted private Vietnamese companies in manufacturing, branding and distribution, consulting those for successful listings and seeking potential investors.
The $18.5 million Mekong Enterprise Fund’s current investment portfolios include 10 well-managed private businesses firms that are in tune with its strategy.
The firms operate in IT, design, furniture, home appliance and gas.
The Mekong Enterprise Fund II has a similar focus with a typical investment size of $3-5 million.
Source: Thanh Nien
The Vietnam Azalea Fund is expected to close by the end of this month.
The fund, with an operational period of 10 to 15 years, will invest in firms that are set to list with the keen interest in those in the primary stages of going public, according to its website.
It says the new fund’s strategy aims at companies around one to tow years prior to listing.
The near-term target of the fund will be the forthcoming initial public offerings by giant state-run corporations like Vietcombank, BIDV, Saigon Beverage Corp. and Hanoi Beverage Corp set in the last two quarter of the year.
Mekong Capital, established in 2001 by individuals both in Vietnam and internationally, manages the Mekong Enterprise Fund, a private equity fund launched in April 2002, and the Mekong Enterprise Fund II, a private equity fund launched in June 2006.
The Vietnam Azalea Fund differs from the Mekong Enterprise Fund and Mekong Enterprise Fund II, which focus primarily on private companies which were never under state ownership.
The private equity funds focus on investing in unlisted private Vietnamese companies in manufacturing, branding and distribution, consulting those for successful listings and seeking potential investors.
The $18.5 million Mekong Enterprise Fund’s current investment portfolios include 10 well-managed private businesses firms that are in tune with its strategy.
The firms operate in IT, design, furniture, home appliance and gas.
The Mekong Enterprise Fund II has a similar focus with a typical investment size of $3-5 million.
Source: Thanh Nien
Monday, April 23, 2007
Indochina Capital buys 15% equity stake of cable firm
London-listed Indochina Capital fund has acquired a 15% stake in the local telecom cable firm Viet Han Corp in central Quang Nam Province.
Peter Ryder, director of Indochina Capital said although the value of the deal was not released, it was the first investment in Vietnam for the newly-established US$500 million Capital Vietnam Holdings, listed with the ticker symbol ICV on the London Stock Exchange.
Under contract, Capital Vietnam Holdings will assist the cable firm in developing a business strategy and offering consulting services for its listing on the local stock exchange set for year’s end.
The securities company will provide the cable firm with consultings on business re-organization, initial public offering (IPO), and services on shareholders management.
The VND225 billion company was established in 2003 by the Vietnam Post and Telecommunication Corp, mainly producing telecom cables and optic cables.
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 amongst Vietnam’s most established investment firms and an innovative leaders in growing financial markets
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 Capital 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.
Source: Thanh Nien
Peter Ryder, director of Indochina Capital said although the value of the deal was not released, it was the first investment in Vietnam for the newly-established US$500 million Capital Vietnam Holdings, listed with the ticker symbol ICV on the London Stock Exchange.
Under contract, Capital Vietnam Holdings will assist the cable firm in developing a business strategy and offering consulting services for its listing on the local stock exchange set for year’s end.
The securities company will provide the cable firm with consultings on business re-organization, initial public offering (IPO), and services on shareholders management.
The VND225 billion company was established in 2003 by the Vietnam Post and Telecommunication Corp, mainly producing telecom cables and optic cables.
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 amongst Vietnam’s most established investment firms and an innovative leaders in growing financial markets
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;
Indochina Capital has invested in real estate in Vietnam for the past 15 years, having developed or financed projects worth more than $1 billion including offices, apartments and hotels.
Source: Thanh Nien
Tuesday, March 13, 2007
Investment funds discover Vietnam
In early 2007, Jaccar, a well-known French investment fund, decided to inject money in Hoang Anh Gia Lai Company. At the same time, Aureous in Southeast Asia also pumped capital into Truong Thanh Wooden Furniture Company.
Prior to that, Draper Fisher Juvervetson (DFJ), the leading US venture investment company, joined hands with VinaCapital to set up a new investment fund in Vietnam. Experts’ forecasts given before about the new wave of portfolio investment flow into Vietnam have become true.
“We will move our head office from Europe to Vietnam.” The statement that surprised everybody was made by the president of Jaccar, Jacques De Chateugvieux, at the signing ceremony of the agreement on strategic partnership with Hoang Anh Gia Lai Joint Stock Company.
The president said that he did not speak prematurely when saying so, stressing that it was the company's actual plan. “Vietnam proves to be a very good destination for doing business. Vietnamese staffs are both clever and diligent. Besides the good business opportunities, I find the labour force here very competitive,” he said.
Several months ago, during his official visit to Vietnam, the Danish Prime Minister cut the ribbon to inaugurate Private Equity New Markets (PRNM), an investment fund managed by BankInvest, which manages the total assets of 23 billion US$, including 3 billion US$ to be injected in developing countries. PENM is managing the capital sum of 80mio US$, which is expected to be injected in unlisted companies in the fields of finance, consumer goods, tourism and hotels.
Prior to that, the appearance of the 112mio US$ Vietnam Holding investment fund was also an event that drew a lot of attention from the financial investors’ circle. 60% of the fund’s capital has been raised from Swiss investors.
Most investment funds are aiming to buy shares of equitised companies or small private companies which need capital to restructure and expand their business scopes.
Don Lam, Director General of VinaCapital, said that VOF (the Vietnam Opportunity Fund managed by VinaCapital) only makes investment in leading companies in every field of the national economy.
VOF has poured money into Kinh Do Confectionary Group, Masan and Pho 24. Mekong Capital eyes small private companies in localities, which use many workers and make products for export.
Louis Nguyen, Managing Director of DFJ VinaCapital L.P stated that projects in information technology (IT) that were original and creative were the ones the venture fund would target.
Tim Draper, the founder of DFJ, added: “We are venture investors. We know that young Vietnamese people are very clever, dynamic and hard working, and will follow new ideas of doing business. We have decided to pursue the big opportunities available here." Though being concerned about the implementation of intellectual property rights in the IT sector and about the limited market opening in the IT sector, Mr Draper still believes that the opportunities are bigger than the challenges.
Source: VEN
Prior to that, Draper Fisher Juvervetson (DFJ), the leading US venture investment company, joined hands with VinaCapital to set up a new investment fund in Vietnam. Experts’ forecasts given before about the new wave of portfolio investment flow into Vietnam have become true.
“We will move our head office from Europe to Vietnam.” The statement that surprised everybody was made by the president of Jaccar, Jacques De Chateugvieux, at the signing ceremony of the agreement on strategic partnership with Hoang Anh Gia Lai Joint Stock Company.
The president said that he did not speak prematurely when saying so, stressing that it was the company's actual plan. “Vietnam proves to be a very good destination for doing business. Vietnamese staffs are both clever and diligent. Besides the good business opportunities, I find the labour force here very competitive,” he said.
Several months ago, during his official visit to Vietnam, the Danish Prime Minister cut the ribbon to inaugurate Private Equity New Markets (PRNM), an investment fund managed by BankInvest, which manages the total assets of 23 billion US$, including 3 billion US$ to be injected in developing countries. PENM is managing the capital sum of 80mio US$, which is expected to be injected in unlisted companies in the fields of finance, consumer goods, tourism and hotels.
Prior to that, the appearance of the 112mio US$ Vietnam Holding investment fund was also an event that drew a lot of attention from the financial investors’ circle. 60% of the fund’s capital has been raised from Swiss investors.
Most investment funds are aiming to buy shares of equitised companies or small private companies which need capital to restructure and expand their business scopes.
Don Lam, Director General of VinaCapital, said that VOF (the Vietnam Opportunity Fund managed by VinaCapital) only makes investment in leading companies in every field of the national economy.
VOF has poured money into Kinh Do Confectionary Group, Masan and Pho 24. Mekong Capital eyes small private companies in localities, which use many workers and make products for export.
Louis Nguyen, Managing Director of DFJ VinaCapital L.P stated that projects in information technology (IT) that were original and creative were the ones the venture fund would target.
Tim Draper, the founder of DFJ, added: “We are venture investors. We know that young Vietnamese people are very clever, dynamic and hard working, and will follow new ideas of doing business. We have decided to pursue the big opportunities available here." Though being concerned about the implementation of intellectual property rights in the IT sector and about the limited market opening in the IT sector, Mr Draper still believes that the opportunities are bigger than the challenges.
Source: VEN
Monday, January 15, 2007
Mekong Capital's Enterprise Fund invests more in magnet wire producer
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
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
Tuesday, January 09, 2007
Investment fund to increase capital
The investment management company Mekong Capital said last week that one of its funds will invest up to 6.25mio US$ in a manufacturing company in Vietnam.
The Mekong Enterprise Fund II, a private equity fund launched in June 2006, has already made an initial investment of 1.9mio US$ in Ngo Han Joint Stock Company, which is one of the largest manufacturers of magnet wire in Vietnam.The fund expected to invest more after the Vietnamese law on the 30 percent limit on foreign ownership in unlisted companies has been clarified. This is an ongoing relationship for Mekong Capital. Its original fund, Mekong Enterprise Fund Ltd, which it launched in 2002, originally invested $1.85 million in Ngo Han in early 2004.
“Since our first fund invested in Ngo Han in early 2004, Ngo Han’s revenues have grown at 57% per year over those three years, while their net profit has grown at a rate of 60% per year over those same three years,” the report quoted Chris Freund, Managing Director of Mekong Capital, as saying.He said Mekong Capital expected the strong growth to continue, especially as the company continued “to expand capacity and strengthen its management team.”
Ngo Han, which employs around 200 people and is located in southern Dong Nai province, is expected to have achieved over $35 million in revenue in 2006 in an industry that may not seem all that glamorous.
Its CEO Nguyen Tien said Mekong Enterprise Fund II’s investment “affirmed the long term relationship and support to the company for the great mutual benefit in the future.”
Ngo Thi Thong, the co-founder and Chairwoman of Ngo Han, expected the investment would prepare the company for a “successful listing.”
The $50 million Mekong Enterprise Fund II is a private equity fund focusing on equity investments in unlisted companies in Vietnam, which at the time of the original investment, are typically about two-to-four years away from a listing on one of Vietnam’s stock exchanges.
Ngo Han is the second investment of Mekong Enterprise Fund II. The previous investment made by the fund is International Consumption Products Joint Stock Company (ICP), a fast-growing consumer products company which owns several leading brands in Vietnam including X-Men, Dr. Men and OCleen.
Source: Thanh Nien
Wednesday, November 08, 2006
Mekong Enterprise Fund invests in manufacturing
The private equity fund, Mekong Enterprise Fund II (MEF II), will invest in two private companies this month. It would be the first investment of the US$50 million fund.
By year-end, the fund would have invested in a total of four companies, all of them in the consumer goods manufacturing sector.
By year-end, the fund would have invested in a total of four companies, all of them in the consumer goods manufacturing sector.
Subscribe to:
Posts (Atom)
