VOF invests in private hospit

RNS Number : 1485B

VinaCapital Vietnam Opp. Fund Ld

21 October 2009

 



RNS Reach

21 October 2009

VinaCapital Vietnam Opportunity Fund Limited

VOF invests in private hospital group

VinaCapital Vietnam Opportunity Fund Limited ("VOF" or "the Company") (VOF.L), an AIM-traded investment company established to target key growth segments within Vietnam's emerging market, announces today that it has acquired a stake in Hoan My Medical Corporation, a private hospital owner and operator in Vietnam.

Hoan My, established in 1999, is the top private healthcare provider in Vietnam in terms of scale, with a combined 620 beds and 300 physicians at four operating hospitals. An additional hospital in HCM City is under construction. Hoan My offers comprehensive in- and outpatient services, primarily for low and middle-income clients.

The Company will invest USD10 million in Hoan My Corp for a minority equity stake. The investment will assist Hoan My upgrade and improve operations in order to attract high-income clients as well. 

Hoan My is a well-known brand with high patient loyalty due to its standard of service, notable in a country where public hospitals suffer from chronic under-funding and out-dated equipment. Vietnam has over 1,100 hospitals, only 4.9 percent of which are privately-owned. Many hospitals, including Hoan My's facilities, run over capacity due to high demand.

Vietnam opened its healthcare sector to private companies in 2000, and total healthcare spending rose 12.8 percent yearly from 2000 to 2005. The private healthcare sector grew 33.6 percent yearly from 2000-2007, with five major private hospital brands in the market. 

Despite this growth, per capita spending on healthcare in 2007 remained at a very low level of USD221 per year, significantly lower than neighbours Thailand (USD323), Malaysia (USD454) and Singapore (USD1,140).

Hoan My expects earnings growth of over 40 percent yearly for the next three years given its strong market position and plans for expansion. 

Andy Ho, Managing Director of Vietnam Opportunity Fund's investment manager, said: "We believe Hoan My is the top brand in the fast-growing private healthcare sector. We are impressed with the vision and management skills of the company's leadership, particularly Hoan My founder and chairman, Dr. Nguyen Huu Tung. 

"In entering this investment agreement, Hoan My is showing their commitment to further expand and professionalise operations, and offer the best quality of healthcare possible. Ultimately, quality care is what will separate Hoan My from its competitors."

Notes to Editors:

VinaCapital Group is a leading asset management, investment banking and real estate consulting firm with unrivalled experience in the Vietnamese market. VinaCapital Group was founded in 2003 and has grown from a single USD10 million fund to a diversified investment firm with over USD1.7 billion in assets under management as of August 2009. 

VinaCapital Investment Management Ltd manages three closed-end funds trading on the AIM Market of the London Stock Exchange. These are: 

• Vietnam Opportunity Fund (VOF) is a USD823 million diversified investment fund that has consistently been among the top performing Vietnam funds. 

• VinaLand Limited (VNL) is a USD655 million real estate fund that was the top performing Vietnam investment fund in 2008.  

• Vietnam Infrastructure Limited (VNI) is a USD265 million fund established in July 2007 as the first overseas fund to invest solely in Vietnam's infrastructure sector.

VinaCapital also co-manages the USD32 million DFJ VinaCapital technology venture capital fund with Draper Fisher Jurvetson, and owns a dominant stake in VinaSecurities JSC, a brokerage. More information is available at www.vinacapital.com. 

More information on VOF is available at www.vinacapital.com/vof.

Enquiries:

Ms Chi Nguyen

VinaCapital Investment Management Limited

Investor Relations

[phone]

[e-mail]

Hiroshi Funaki [phone]

LCF Edmond de Rothschild Securities, Broker

[e-mail]

Alastair Hetherington

Financial Dynamics, Public Relations (Hong Kong)

[phone]

[e-mail]

Andrew Walton

Financial Dynamics, Public Relations (London)

[phone]

[e-mail]

Philip Secrett

Grant Thornton Corporate Finance, Nominated Adviser

[phone]

[e-mail]

 

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