Mekong Capital announced today that Mekong Enterprise Fund had successfully divested 100 per cent of its investment in AA Corporation to an investment fund.
This is the 5th full exit by the Mekong Enterprise Fund, and the 8th full exit among funds managed by Mekong Capital.
This divestment results in a gross return multiple of 2x and a gross IRR of approximately 10 per cent on the shares sold by Mekong Enterprise Fund. The fund originally invested $1.67 million in AA, between March 2003 to July 2005.
Nguyen Quoc Khanh, chairman of AA, said: “AA Corporation is very proud to have had Mekong Enterprise Fund as our shareholder since 2003. Their investment in AA Corporation allowed us to expand our manufacturing facility which continues to be the backbone of our competitive advantage in the market.”
Chris Freund, managing partner of Mekong Capital, said: “AA was one of Mekong Enterprise Fund’s first two investments, which we have been holding for more than 8 years. In recent years they have built up their management team, and delivered increasingly strong performance.”
“2011 has been their best year ever in terms of net profit performance. We are delighted to be selling our shares in AA at a time that the company is so healthy.”
AA is the leading interior fit out company operating in Vietnam. The interior team focuses on providing the highest quality fit out services for a variety of hospitality projects, both in Vietnam and internationally.
AA’s revenue reached to $26.7 million in 2009 and $40 million in 2010. By June 30, 2011, AA already exceeded full-year net profit target for 2011, which was set at a 2011 growth of 123 per cent compared to 2010.
The Mekong Enterprise Fund was launched in 2002 with $18.5 million in committed capital and was fully invested in 10 unlisted private companies by the end of 2005.