Major investment into International Dairy Products
RNS Reach
18 December 2014
VinaCapital Vietnam Opportunity Fund Limited
VinaCapital Vietnam Opportunities Fund Limited and Daiwa PI Partners Co. Ltd. announce major investment into International Dairy Products JSC
VinaCapital Vietnam Opportunity Fund Limited ("VOF" or "the Company"), an AIM-traded investment company established to target key growth segments within Vietnam's emerging market, and Daiwa PI Partners (DPIP), a Tokyo-based leading financial investor, announces today that it has acquired a majority stake in International Dairy Products JSC (IDP), one of Vietnam's leading dairy producers. VOF and DPIP have co-invested USD45.0 million (80.0% from VOF) making them the largest shareholders, with a combined 70.0 percent ownership stake in IDP.
International Dairy Products JSC was established in 2004 with its first factory in Chuong My - Ha Noi. It later launched the second and third factory in Ba Vi and Cu Chi, two of the largest fresh milk production hubs of Vietnam, in 2010 and 2013. IDP specializes in producing and selling UHT milk, pasteurized fresh milk, spoon and drinking yogurt, using the latest technology from Europe to offer the best-quality dairy products to Vietnamese consumers. Currently, IDP is cooperating with over 2,000 farmers, collecting more than 75 tonnes of fresh milk per day for dairy production under such brands as Love'in Farm, Ba Vi, and Love'in Farm KUN. Management expects total revenue to exceed USD80.0 million for 2014.
VOF and DPIP are very fortunate to have Mr. Tran Bao Minh come on board as the CEO to lead IDP to the next stage of growth. Mr. Minh comes to IDP with more than 15 years of experience in product marketing and executive leadership from companies such as Pepsi Co, Vinamilk and TH Milk.
Mr. Tran Bao Minh, IDP CEO, commented on the transaction, "With these two new major shareholders, IDP will now have more resources at its disposal to support our long term goals, which focuses on developing high quality dairy and nutrition products, specialized for women and children. Discussions with VOF and Daiwa PI Partners have already helped to shape our plan to expand dairy farms, improve productivity and improve our nation-wide distribution system."
VinaCapital CEO, Don Lam, stated, "We are very pleased to be working closely with Mr. Minh on our latest private equity investment, as he immediately brings unparalleled experience to help lead IDP through the next phase of the company."
A member of Daiwa Securities Group whose operational base spreads around the world, including Japan, the United States, Europe, and Asia-Oceania, Daiwa PI Partners (DPIP) is a high-profile multi-sector investor in Japan and is an authority in private equity and debt investments with 13 years experience investing in major companies inside and outside Japan. With the investment in IDP, DPIP takes its first step in Vietnam where it sees tremendous growth opportunities. In collaboration with VOF, it will connect IDP to Daiwa Securities Group's large client base, especially Japan's top dairy corporations in order to help IDP apply modern production technologies and establish a mutual distribution chain where high quality Japanese dairy products can be exposed to Vietnam market and vice versa.
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About VinaCapital
VinaCapital is the leading investment management and real estate development firm in Vietnam, with a diversified portfolio of USD1.5 billion in assets under management. VinaCapital was founded in 2003 and boasts a team of managing directors who bring extensive international finance and investment experience to the firm. Our mission is to produce superior returns for investors by using our experience and knowledge to identify the key trends and opportunities that emerge as Vietnam continues to develop its economy. To achieve this, VinaCapital has industry-leading asset class teams covering capital markets, private equity, fixed income, venture capital, real estate and infrastructure.
VinaCapital manages three closed-end funds trading on the AIM Market of the London Stock Exchange. These funds are: VinaCapital Vietnam Opportunity Fund Limited (VOF), VinaLand Limited (VNL), and Vietnam Infrastructure Limited (VNI). VinaCapital also co-manages the USD32 million DFJ VinaCapital L.P. technology venture capital fund with Draper Fisher Jurvetson.
VinaCapital has offices in Ho Chi Minh City, Hanoi, Danang, Singapore and Yangon. More information about VinaCapital is available at www.vinacapital.com.
About Daiwa PI Partners Co. Ltd.
Daiwa PI Partners (DPIP) is the leading financial investment firm under Daiwa Securities Group, one of the largest independent and comprehensive securities companies in Japan with a global operational base. DPIP was founded in 2001 and has invested in diverse areas, including private equity, properties, loans, and energy, with the accumulated investment amount of around USD10.0 billion. By leveraging Daiwa Securities Group's broad network and its strong relationships with clients, DPIP has established great credibility with investees and business partners while enjoying sound investment results.
DPIP has offices in Tokyo and Singapore. More information about DPIP is available at www.dpipartners.co.jp/english/index.html.
Media queries
David Dropsey
VinaCapital Investment Management Limited
Investor Relations/Communications
+84 8 3821 9930
Philip Secrett
Grant Thornton UK LLP, Nominated Adviser
+44 (0)20 7383 5100
Hiroshi Funaki / Andrew Davies
Edmond de Rothschild Securities, Broker
+44 (0)20 7845 5960
David Benda / Hugh Jonathan
Numis Securities Limited, Broker
+44 (0)20 7260 1000
Andrew Walton
FTI Consulting, Public Relations (London)
+44 (0)20 7269 7204
andrew.walton@fticonsulting.com
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