VNH invests into the cold-chain logistics sector
Press Release 14 August 2019
VietNam Holding Limited ("VNH" or the "Company")
Investment into ABA Cooltrans - leading cold chain service provider in Vietnam
The Company announces that it has completed the purchase of the Vietnam Dong equivalent of US$6 Million in convertible bonds in A BA Trading Solutions JSC ("ABA Cooltrans" or "ABA") and this is included in the Company's Net Asset Value (NAV) as of 31st July 2019 that was released today.
Following the completion of this investment, approximately 4.2% of the Company's NAV as at 31st July is invested in private equity opportunities, within the 20% of NAV limit approved for investments into private companies.
The investment was made in the form of convertible bonds, and it is the current intention of Dynam Capital, Ltd, the Company's Investment Manager, to convert these bonds into the equity in ABA Cooltrans ahead of a possible future IPO or listing in Vietnam, subject to prevailing limits on foreign investment.
Established in 2008, ABA is a leading private cold chain solution provider in Vietnam, with a fleet of approximately 300 refrigerated trucks and 40,000 pallets of cold storage in Hanoi and Ho Chi Minh City. ABA provides integrated cold chain services focused on the domestic market, offering modern retailers and suppliers a one-stop shop for temperature-controlled logistics. ABA's clients include large modern retailers nationwide such as VinMart, Bach Hoa Xanh, and BigC, as well as suppliers providing meats, dairy products, and fresh produce, such as Masan Nutri-Science, Bel Vietnam and Unilever.
Dynam Consulting and Services Co Limited ("Dynam Vietnam"), the Vietnam subsidiary of the Investment Manager, estimates that the cold-chain logistics sector is growing at between 15% and 20% per annum and is benefitting from the growth of modern trade in the country (super-markets, mini-marts and convenience stores) and the proliferation of restaurant chains that require the safe delivery of chilled/fresh products.
"As the modern trade portion of the market grows in Vietnam, ensuring food safety and quality across the 'farm to fork' chain becomes increasingly important, and the growth prospects for ABA are very attractive", said Vu Quang Thinh the CEO of Dynam Vietnam.
"ABA's growth has been directly linked to the increasing demand for fresh and safe food by Vietnamese consumers," said Mr. Luong Quang Thi, founder and CEO of ABA. "Controlling temperature throughout the supply chain requires a much higher degree of investment for logistics providers. In addition to trucks and storage, we have invested extensively into our human capital, to build a corporate culture focused on our clients and the quality of their products." Mr Luong added that "the investment from Vietnam Holding allows ABA to pursue its vision as the leading cold chain solutions provider in Vietnam."
In addition to the founders of ABA, the only foreign investor in ABA, other than the Company, is Mekong Enterprise Fund III, managed by Mekong Capital, a Vietnam-focused private equity firm. Mekong Capital was also an early investor in Mobile World Group and Phu Nhuan Jewelry, currently two of the top five investments of the Company.
-- ENDS --
For further information please contact:
Dynam Capital Limited
Craig Martin Tel: +84 28 3827 7590
info@dynamcapital.com |www.dynamcapital.com
Broker Tel: +44 20 7220 0500
William Marle / Giles Rolls
Notes to Editors:
Dynam Capital, Ltd is the Guernsey regulated Investment Manager for Vietnam Holding, Ltd, an investment fund listed on the premium segment of the main market of the London Stock Exchange.
Vietnam Holding Limited has been investing in Vietnam since 2006, and has made several investments in companies that may benefit from the themes of industrialisation, urbanisation and the growth in the domestic consumer sector in Vietnam. As at 31st July 2019 its top five investment by NAV are FPT, Phu Nhuan Jewelry, Saigon Cargo Services, Mobile World Group and MB Bank.
As at 14th August 2019 the Company's estimated and unaudited NAV per share was USD 2.90 an increase of 6.50% since the beginning of January 2019, outperforming the Vietnam All-Share Index (VNAS) which rose 4.19% in the same period. On a five year basis from 14th August 2014 to 14th August 2019 the Company's estimated NAV per share has increased by 42.4%, outperforming the Vietnam All-Share Index which has risen by 33.4% during the same period.
For more information about VNH or Dynam, please visit www.vietnamholding,com and www.dynamcapital.com.
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