Mekong Capital triples ownership in Traphaco

January 26, 2011 | 17:35

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Mekong Capital announced today that its Vietnam Azalea Fund Limited had tripled its ownership in traditional medicines producer Traphaco Joint Stock Company, increasing its shareholding percentage to 20 per cent from 6.5 per cent.

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The step was made three years after the fund started investing in the company with initial investment capital of over $3 million along with other foreign partners such as ANZ and BVIM.

Traphaco has been establishing more company-owned distribution branches in key provinces across the country and taking actions to acquire full control of its manufacturing affiliates. Meanwhile, they have continued to invest in the development of their brand.

“We believe these are the right steps for a Vietnamese pharmaceutical company to achieve sustainable profit growth over the coming years.

We look forward to partnering with Traphaco to fulfill on their vision,” said Chris Freund, managing partner of Mekong Capital.

Traphaco is a pharmaceutical company which specialises in the development, marketing and distribution of Vietnamese traditional medicines. Traphaco produces and sells more than 230 products focusing on central nervous system, digestive, cardiovascular, analgesics, respiratory and ontological system and eye care among others.

The company owns a GMP-compliant factory in Hanoi, and it is a minority-shareholder of another GMP-compliant factory in northern Hung Yen province, called Traphaco CNC.

Vietnam Azalea Fund Limited targeting Vietnamese future blue-chip companies, both privately and formerly state-owned also acquired a minority stake in property developer Nam Long Investment Corporation for approximately $9.1 million in June last year before exiting its investment from Masan Food Corporation in November last year.

By Hoang Giap

vir.com.vn

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