VOF sells An Giang Plant Protection stake to Standard Chartered

September 30, 2014 | 11:02

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VinaCapital-managed Vietnam Opportunity Fund (VOF) has reached a deal to sell its stake in An Giang Plant Protection Joint-Stock Co. (AGPP) to Standard Chartered Private Equity.

VinaCapital said in a statement that VOF would sell its 23.6 per cent stake in AGPP for $63.1 million in cash, or $4.10 per share, representing a 23.7 per cent internal rate of return over a period of five years.

As AGPP shares have not been listed on stock market, their book value should be a reference and thereby the value of this transaction represents a premium of 22 per cent over the net asset value (NAV) at the end of May, the last recorded value prior to receiving an offer for the shares.

Andy Ho, VinaCapital’s CEO said, “VOF’s share price to NAV discount is too wide. Proceeds from this divestment are currently being considered for a few major private equity investment opportunities and the ongoing share buyback programme.”

VOF yesterday traded on London’s AIM market at $2.71 per share, compared to its NAV of $3.51.

AGPP is a leading firm in the manufacture and distribution of pesticides in Vietnam. It has a network of 500 wholesalers and 4,500 retail outlets to distribute its 23 stock-keeping units (SKU). The firm employs over 3,000 people at offices in Ho Chi Minh City, the Mekong Delta and Cambodia as well as two pesticide factories, an R&D center, a packaging plant and six rice mills.

Its sixth rice mill was launched last year in the Mekong Delta province of Bac Lieu. It plans a total of 12 mills with capital expenditures estimated at approximately $137 million.

AGPP reported revenue of $354 million last year, an annual increase of over 17 per cent. In the first half of this year, the firm generated revenue of $200 million, roughly half of the firm’s whole year target of $399 million, and net income of $12 million.

By By Duc Luan

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