Investment funds have been divesting numerous businesses since COVID-19 has broken out again.
|Investment fund Seedcom divested three fashion store chains |
The Vietnamese market a few days ago was rocked by news that local investment fund Seedcom divested a series of fashion store chains such as Eva de Eva, Juno, and Hnoss. The move took place as the health crisis has interrupted the economy again.
To Thi Dung, founder of Eva de Eva said that Seedcom had been focusing on e-commerce and raising the number of points of sale. However, since last year, the plan was interrupted by the pandemic.
Under the COVID-19 lockdown, people have been spending more time at home, resulting in less demand for clothing and fashion items. Indeed, fashion chains have been experienced losses for years now. Coupled with the difficulties from last year, it is understandable why the fund is making an exit.
As of the end of 2019, Eva de Eva, Hnoss, and Juno recorded deficits of VND71 billion ($3.1 million), VND21 billion ($913,040), and VND40 billion ($1.74 million), respectively.
Meanwhile, Recapital Investment Pte., Ltd. last week announced selling all of its 10.7 million (11.9 per cent) stocks of Ninh Van Bay Travel Real Estate JSC (HSX: NVT).
Last year, Ninh Van Bay saw net revenue of VND211 billion ($9.17 million), down 24 per cent on-year. Its after-tax profit was VND5.5 billion ($239,130), down nearly 80 per cent on-year.
Early last month, PENM III registered to sell its entire 66.5 million stocks of Hoa Phat Group (HSX: HPG) from January 7 to February 5. The fund ended up selling 59.4 million stocks, dropping its ownership in Hoa Phat to 0.21 per cent.