VinaCapital fund to sell stake in liquor producer

January 29, 2011 | 21:11

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VinaCapital Vietnam Opportunity Fund Limited (VOF), an AIM (Alternative Investment Market) -quoted investment vehicle, plans to sell a 23.6 per cent stake in Hanoi Liquor Company (Halico) to global drinks firm Diageo.

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Diageo will pay VOF $51.6 million for the shares – 67.4 per cent more than the VOF paid to acquire them in December 2006.

Proceeds from the sale will be booked to VOF's net asset value, as calculated in March 2011. Its net value is expected to increase by 4.1 per cent, or 9.8 cents per share, as a result of the transaction.

Andy Ho, managing director of VOF's Investment Manager, said the Halico exit was a clear indication that Vietnam offered excellent opportunities in the consumer goods sector and other high-growth areas.

"This is our second trade sale in many months, as multinational companies are looking to Vietnam as their next market for expansion – creating good exit opportunities for private equity investors," Ho said.

Halico's shares, which trade on Vietnam's over-the-counter market, have performed strongly over the past year. In 2009, Halico earned a net profit of $11.2 million, a year-on-year increase of 35 per cent.

VOF, an investment fund managed by leading asset management group VinaCapital, sold its stake in instant coffee producer Vinacafe in November 2010 for an IRR of 45 per cent over five years.

VNS

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