Mekong Capital wholly divests Loc Troi Group

October 08, 2017 | 21:34
According to information published by Vietnam Security Depository (VSD) on September 28, Vietnam Azalea Fund (VAF) of Mekong Capital completed the sale of one million shares to Kingsmead Vietnam and Indochina Growth Master Fund. 
Ending a nine-year investment, Mekong Capital unloaded its last 25 per cent in LTG

To date, VAF successfully divested $12 million from LTG, including the $9.2-million divestment of a 75 per cent stake in July at the sale price of VND68,000 ($3) per share and the remaining 25 per cent stake for $2.8 million.

As estimated after the last sale, VAF generated a gross return multiple of 3.6x and a gross internal rate of return (IRR) of roughly 18.7 per cent in USD denominations on the shares.

Prior to the latest round of LTG sales, Mekong Capital invested in a total seven businesses, including Masan Consumer and Traphaco. As of October, Traphaco remains the only firm invested by the fund.

VAF’s consecutive divestments have drawn significant attention from domestic and foreign firms and investors.

VAF was launched in June 2007 and manages $64 million in committed capital in areas including retail, distribution, education, and pharmaceuticals. VAF was founded to invest in firms that were less than 24 months from listing.

Mekong Capital is a Vietnam-focused private equity firm investing in retail, restaurants, consumer products, and distribution. The fund comprises of numerous funds, including Mekong Enterprise Fund, Mekong Enterprise Fund II, Mekong Enterprise Fund III, and Vietnam Azalea Fund.

After finishing the latest transactions in July and late September, Mekong Capital’s funds have finally divested a total of $79 million, closing a nine-year partnership.

After the first three quarters of 2017, Mekong Capital succeeded in making its exit from LTG and Vietnam Australia International School (VAS), as well as sold the fund’s partial sales in Mobile World.

Mekong Enterprise Fund II, another fund under Mekong Capital’s management, wholly divested a total $25 million from VAS in April, carrying a gross return multiple of 4.5x and a gross IRR of roughly 25.8 per cent after six years of investment.

Also in 2016, Mekong Capital completed the divestment process from four other businesses, namely FPT Corporation, Intresco, Nam Long, and Phu Nhuan Jewelry.

Loc Troi Group, formerly An Giang Plant Protection JSC(AGPPS), is a leading agricultural and service firm in Vietnam, with more than 24 years of operations and roughly $350 million in revenue in 2016.

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By By Sam Luong

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