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Vietnam Azalea Fund fully exits from Loc Troi Group

Released at: 10:58, 02/10/2017

Vietnam Azalea Fund fully exits from Loc Troi Group

Illustrative image (Source: mekongcapital.com)

Mekong Capital fund completes sale of remaining 25% holding in Loc Troi on September 28.

by Linh San

Mekong Capital has announced that its Vietnam Azalea Fund has successfully divested 100 per cent of its investment in the Loc Troi Group at VND68,000 ($3) per share, for a cumulative consideration of more than $12 million.

Loc Troi, formerly known as the An Giang Plant Protection JSC, was established in 1993 with a main business line of distributing crop protection chemicals.

With a strong reputation in adding value to investee firms and conducting profitable divestments, it’s no surprise that Mekong Capital continues to realize high rates of return from its share sales.

After completing the sale of its remaining 25 per cent holding in Loc Troi on September 28, the Vietnam Azalea Fund generated a gross return multiple of 3.6x in USD and a gross IRR of approximately 18.7 per cent in USD on the shares sold by the Fund over the eight and a half years it held the investment.

With this latest divestment, Mekong Capital funds have earned a combined $79 million from divestments this year, adding to its successful exits over recent years.

In the first nine months of this year, Mekong Capital funds have fully exited the Loc Troi Group and the Vietnam Australia International School (VAS), and completed several partial share sales in Mobile World.

The Mekong Enterprise Fund II divested 100 per cent of its investment in VAS in April at a total consideration of more than $25 million, resulting in a gross return multiple of 4.5x (including dividends received) and a gross IRR of 25.8 per cent over the six-year period the Fund held the investment. Mekong Enterprise Fund II has also continued to divest from Mobile World, with a partial exit in September worth approximately $18 million, a realized gross IRR of 62.6 per cent, and a gross return multiple of more than 133.2x on the shares sold.

Mekong Capital funds made four full exits last year, from Phu Nhuan Jewelry, FPT Corporation, Intresco, and Nam Long, as well as several partial exits from Mobile World.  

By applying its well-proven investment framework, called “Vision Driven Investing”, Mekong Capital has successfully added value and helped grow all of its investee companies, and therefore earned a much higher return compared with its initial investments.

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