03:41 (GMT +7) - Wednesday 26/09/2018


Vietnam Azalea Fund sells 75% of Loc Troi holding

Released at: 10:15, 26/07/2017

Vietnam Azalea Fund sells 75% of Loc Troi holding

Photos: Mekong Capital

Remaining 25% to be sold before end of September.

by Doanh Doanh

Mekong Capital announced on July 26 that its Vietnam Azalea Fund (VAF) has completed the sale of 75 per cent of its investment in the Loc Troi Group at VND68,000 ($3) per share, for a total consideration of $9.2 million.
This partial divestment resulted in a gross return multiple of 3.50x in US dollars and a gross IRR of approximately 18.6 per cent in US dollars on the shares sold by the Fund over the eight and a half years it held the investment.
Since the Fund invested $4.4 million in Loc Troi in December 2008, the group has transformed from a distributor of crop protection chemicals into a vertically-integrated agriculture company. It successfully listed its shares on the Unlisted Public Company Market (UPCoM) on July 24, with a value of $174.8 million at the close of the first day of trade.
“After eight and a half years of partnering together, we appreciate the Chairman, Mr. Huynh Van Thon, for honoring his commitment to list the company’s shares and for helping us to facilitate our exit,” said Mr. Chris Freund, Partner at Mekong Capital. “I also expect that the listing will bring other benefits to the company and its shareholders.”

VAF has also entered into an agreement to sell its remaining shares in Loc Troi for VND68,000 each, which will be completed before the end of September. After the completion of this exit, the only remaining investment by VAF will be in Traphaco.
The Loc Troi Group, formerly known as the An Giang Plant Protection JSC, was established in 1993 with a main business line of distributing crop protection chemicals. Its initial area of operations was only in the Mekong Delta. In 1994, it opened a representative office in Ho Chi Minh City and then expanded its business throughout the country.

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