Mekong Capital divests ICP

February 22, 2011 | 10:31

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Mekong Capital announced on February 21 that Mekong Enterprise Fund II Ltd had successfully divested total its first fund’s investment in International Consumer Products (“ICP”) to a strategic investor, Marico Ltd., a publicly listed consumer products company based in India.

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This divestment results in a gross return multiple of 2x and a gross IRR of approximately 21 per cent on the shares sold by Mekong Enterprise Fund II. The Fund originally invested $6.25 million in ICP in October 2006, which was the first investment made by Mekong Enterprise Fund II.

“Mekong Capital is one of the few private equity-focused fund management firms in Vietnam that committed in long-term growth and adding significant value to investee companies as a shareholder.

During our partnership, Mekong Capital greatly contributed into setting up our transparent corporate governance and strong corporate culture,” said Phan Quoc Cong, president of ICP.

Chris Freund, managing partner of Mekong Capital, expressed: “ICP was our first investment in a company that represented the new generation of Vietnamese leadership – younger and more international experience than the older generation of private companies.

ICP, one of the fastest growing fast-moving-consumer-goods companies in Vietnam, manufactures and markets a wide range of household, personal care and food products. The company owns strong brands such as X-men, L’Ovite, and Thuan Phat.

In 2009, ICP acquired controlling ownership in Thuan Phat, one of the local leaders specialised in traditional sauces and condiments.

The $50 million Mekong Enterprise Fund II is a private equity fund focusing on equity investments in unlisted companies in Vietnam. The fund aims to make investments in well-managed, fast-growing companies, particularly in consumer-driven industries in Vietnam.

By Van Anh

vir.com.vn

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