VinaCapital Vietnam Opportunity Fund Limited
(the "Company" or "VOF")
LEI Number: 2138007UD8FBBVAX9469
Partial Divestment of Stake in International Dairy Products - 9 July 2020
Ho Chi Minh City - VinaCapital Vietnam Opportunity Fund (LSE: VOF), the flagship fund of VinaCapital ("the Manager"), is pleased to announce the partial divestment of International Dairy Products ("IDP"), currently the largest private equity holding in the VOF portfolio (4.1% of NAV as at announcement).
VOF, along with co-investment partner Daiwa PI Partners ("DPIP"), have divested a 28% stake in IDP, one of Vietnam's leading dairy producers, to Blue Point, a Vietnamese financial and strategic investor in the consumer goods and dairy products sector. The financial terms of the divestment of this privately negotiated transaction were not disclosed, although the divestment implies a return of approximately 1.5 times on invested capital for VOF.
This divestment marks the culmination of a lengthy and successful turnaround effort by the Manager, which commenced from time of investment in December 2014. Over the past five years, VinaCapital has significantly added value through the appointment of professional managers and consultants to execute the business turnaround and growth strategy.
Commenting on the successful divestment, Andy Ho, Chief Investment Officer and Managing Director at VinaCapital, stated, "We invested in IDP while it was in distress and I am pleased to see that our team has done a tremendous job restructuring and transforming this business and grow it into one of the leading players in Vietnam's dairy sector. Today, it is recognised nationwide through a strong portfolio of products and family of brands. Our new co-investor is a natural partner for us to partially exit our holding, and we welcome their involvement to further push and accelerate IDP into its next phase of growth."
In February 2020, the Manager provided an update to investors that IDP recorded a very strong year in 2019 from a revenue and EBITDA perspective. As a result, the Manager was able to take IDP through a capital restructuring program which enabled the company to fully repay a shareholder loan to VOF of over USD15 million while working on a partial divestment to a local investor as a new significant minority shareholder in IDP.
Launched in 2003, VinaCapital Vietnam Opportunity Fund Limited is a Guernsey-domiciled, closed-ended investment company, listed on the Main Market of the London Stock Exchange. VOF's investment objective is to achieve medium to long-term returns through investment either in Vietnam or in companies with a substantial majority of their assets, operations, revenues, or income in, or derived from, Vietnam.
VOF is classified as a registered closed-ended Collective Investment Scheme under the Protection of Investors (Bailiwick of Guernsey) Law 1987 and is subject to The Companies (Guernsey) Law, 2008.
VOF is managed by VinaCapital Fund Management JSC, an entity managed and regulated in Vietnam by the State Securities Commission of Vietnam, a member of the International Organization of Securities Commissions.
More information about VOF may be found at https://vof.vinacapital.com.
Founded in 2003, VinaCapital is a leading investment and asset management firm headquartered in Vietnam, with a diversified portfolio of USD3 billion in assets under management. The firm manages a closed-ended fund that trades on the Main Market of the London Stock Exchange, as well as the Forum One - VCG Partners Vietnam Fund, an open-ended UCITS-compliant fund, the Vietnam Equity Special Access Fund, numerous segregated accounts, three domestic funds, and a recently launched ETF product. VinaCapital also has joint ventures with Draper Fisher Jurvetson in venture capital, and Warburg Pincus in hospitality and lodging. VinaCapital's expertise spans a full range of asset classes including capital markets, private equity, real estate, venture capital, and fixed income.
VOF is managed by VinaCapital Fund Management Limited, an entity managed and regulated in Vietnam by the State Securities Commission of Vietnam, a member of the International Organization of Securities Commissions.
For more information about VinaCapital, please visit www.vinacapital.com .
1. References to VOF or the Company in this announcement shall mean VinaCapital Vietnam Opportunity Fund Limited, a non-cellular company incorporated in the Bailiwick of Guernsey under The Companies (Guernsey) Law, 2008, with registered number 61765. It is authorised by the Guernsey Financial Services Commission (reference number 2268242) as a registered closed-ended investment scheme under The Protection of Investors (Bailiwick of Guernsey) Law, 1987 and in compliance with the Registered Collective Investment Scheme Rules, as amended.
2. The registered office address of the Company is East Wing, Trafalgar Court, Les Banques, St Peter Port, Guernsey, Channel Islands, GY1 3PP.
3. This announcement may contain inside information as stipulated under the Market Abuse Regulations (EU) NO. 596/2014 (MAR).