VOF invests in leading packaging company

RNS Number : 4525P

VinaCapital Vietnam Opp. Fund Ltd

10 October 2019

 

VinaCapital Vietnam Opportunity Fund Limited

(the "Company" or "VOF")

LEI Number: 2138007UD8FBBVAX9469

VOF INVESTS IN ONE OF VIETNAM'S LARGEST PLASTIC PACKAGING COMPANIES

VinaCapital Vietnam Opportunity Fund (LSE: VOF), the flagship fund of VinaCapital, today announces that it has made a private equity investment in Ngoc Nghia Industry-Services-Trading Joint Stock Company ("Ngoc Nghia"), a pioneer and leading manufacturer of PET (polyethylene terephthalate) packaging in Vietnam. VinaCapital will lead a consortium to invest USD21.4 million in Ngoc Nghia, of which VOF will invest USD17.0 million for an undisclosed stake and will receive two seats on the Board.

Ngoc Nghia has the largest plastic packaging production capacity in Vietnam, with an annual output of 3.7 billion preforms, bottles and closures manufactured per year at three production sites. Management estimates that in terms of volume, Ngoc Nghia accounts for the largest market share of PET packaging. Based in Ho Chi Minh City, Ngoc Nghia has been growing its revenue base at a compound annual growth rate (CAGR) of 15.3% between 2016 and 2018, and in 2019, expects to deliver revenue of USD74.0 million from its core PET business. PET is the highly recyclable, lightweight, resealable and shatter-resistant plastic used by a variety of food and beverage and home and personal care product manufacturers. Ngoc Nghia's longstanding relationships with a range of international and domestic clients such as Unilever, Coca-Cola, Pepsi and Vinamilk will further help drive the company's growth.

The PET packaging sector outperformed the plastic packaging industry with a registered CAGR of 15.9% during 2010 - 2017 driven by the dynamic growth in the consumer goods sector, namely non-alcoholic drinks, home and personal care, and sauces and condiments, which are expected to deliver healthy growth over the coming years thanks to Vietnam's growing population with rapid urbanisation and increasing household spending.

"Ngoc Nghia is the perfect example of a market leading company we like to invest in. It is well-established and serves some of the sectors that are benefitting from Vietnam's strong domestic consumption story. Its management team is experienced and recognises the need to innovate into new areas such as packaging for milk and alcoholic beverages. They evolve with the market, which is why they have invested in advanced equipment and have a strong commitment to research and development focused on minimising environmental impact. We look forward to working with them to take their company to its next stage of growth," said Andy Ho, Managing Director of VOF.

Ms. La Bui Hong Ngoc, Chief Executive Officer of Ngoc Nghia said, "As we looked at expanding our manufacturing capabilities as well as our market penetration, particularly in northern Vietnam, we considered a range of financing options. Ultimately, we determined that VinaCapital's strong track record of private equity investing provided not just the capital we need but also a partner with the experience that will enable us to meet our long-term business objectives."

About VOF

VinaCapital Vietnam Opportunity Fund Limited (the "Company" or "VOF") is a Guernsey domiciled closed-ended investment company. The Company is quoted on the Main Market of the London Stock Exchange ("LSE") with a Premium Listing.

VOF is managed by VinaCapital Fund Management Limited, an entity regulated in Vietnam by the State Securities Commission of Vietnam, a member of the International Organization of Securities Commissions. VinaCapital is one of Vietnam's leading investment management companies, with USD3.3 billion in assets under management.

For more information about VOF, please visit https://vof.vinacapital.com.

Enquiries

Michael Truong / Joel Weiden
Investment Manager - Investor Relations and Communications VinaCapital Investment Management Limited
T: [phone]
E: [e-mail] E: [e-mail]
David Benda / Hugh Jonathan
Broker Numis Securities Limited
T: [phone]
E: [e-mail]
Lewis Germain
Company Secretary / Administrator Aztec Financial Services (Guernsey) Limited
T: [phone]
E: [e-mail]
Edward Gascoigne-Pees
Public Relations (London) Camarco
T: [phone]
E: [e-mail]
David Harris
Marketing and Distribution (London) Frostrow Capital LLP
T: [phone]
E: [e-mail]

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).

 

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