Sale of stake in Halico
RNS
26 January 2011
VinaCapital Vietnam Opportunity Fund Limited
Sale of stake in Hanoi Liquor Joint Stock Company at 5.3x exit multiple
VinaCapital Vietnam Opportunity Fund Limited ('VOF', or 'the Company'), an AIM-quoted investment vehicle focused on Vietnam, today announces the sale of its equity stake in Hanoi Liquor Joint Stock Company ('Halico') to Diageo plc ('Diageo'), the global premium drinks business.
Under the terms of the transaction, Diageo will pay USD51.6 million in cash for VOF's 23.6 percent stake in Halico. The price represents an exit multiple of 5.3x, or an IRR of 67.4 percent on the acquisition price paid by VOF in December 2006. Proceeds from the sale will be booked to the Company's NAV as calculated in March 2011. VOF's NAV is expected to increase by approximately 4.1 percent, or 9.8 cents per share, as a result of this transaction.
Halico is Vietnam's leading spirits producer and distributor. It has received several distinctions including a Golden Vietnam Star award and a Vietnam Essence award for its VinaVodka brand.
Halico's shares, which trade on Vietnam's over-the-counter (OTC) equities market, have witnessed a strong performance over the past year. In 2009 Halico's full year net profits rose to USD11.2 million, which represent an impressive year-on-year increase of 35 percent.
VOF holds significant stakes in several companies in Vietnam's consumer goods sector, including Vinamilk, Kinh Do, Phu Nhuan Jewelry, and Thai Hoa Coffee.
Commenting on the sale, Andy Ho, Managing Director of VOF's Investment Manager, said: "The Halico exit is a clear indication that Vietnam offers excellent deal opportunities in the consumer goods sector, and other high-growth areas. This is our second trade sale in as many months, as multinational companies are looking at Vietnam as their next market for expansion - creating good exit opportunities for private equity investors."
VOF in November 2010 sold its stake in Vinacafe, an instant coffee producer, for an IRR of 45 percent over five years.
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 USD1.7 billion in assets under management as of December 2010.
VinaCapital manages three closed-end funds trading on the London Stock Exchange's Alternative Investment Market (AIM). These are: VinaCapital Vietnam Opportunity Fund (VOF); VinaLand Limited (VNL); and Vietnam Infrastructure Limited (VNI). VinaCapital also co-manages the DFJ VinaCapital technology venture capital fund with Draper Fisher Jurvetson. More information is available at www.vinacapital.com.
More information on VinaCapital Vietnam Opportunity Fund Limited is available at www.vinacapital.com/vof.
Enquiries:
Michael L. Gray
VinaCapital Investment Management Limited
Investor Relations/Communications
+84 8 821 9930
Philip Secrett
Grant Thornton Corporate Finance, Nominated Adviser
+44 20 7383 5100
Hiroshi Funaki
LCF Edmond de Rothschild Securities, Broker
+44 20 7845 5960
Alastair Hetherington
Financial Dynamics, Public Relations (Hong Kong)
+852 3716 9802
Andrew Walton
Financial Dynamics, Public Relations (London)
+44 20 7269 7204
This information is provided by RNS
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