VOF invests in Prime Group
RNS
29 April 2010
VinaCapital Vietnam Opportunity Fund Limited
VOF invests in ceramics manufacturer Prime 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 Prime Group JSC, Vietnam's leading ceramics manufacturer.
Prime Group JSC, among other holdings, owns eight ceramic tile factories and a nationwide distribution network resulting in a 30 percent market share. VOF has invested USD15 million in Prime Group for an equity stake of 7.0 percent. This represents 1.9 percent of VOF's net asset value at 31 March 2010, making Prime Group one of the Company's top ten equity holdings.
VinaCapital's investment comes as Prime Group prepares to list its shares publicly, expected in the third quarter of 2010. Prime Group's 2009 revenue and earnings were USD123 million and USD16 million, respectively. Prime Group expects earnings growth of over 30 percent yearly for the next three years, with a new factory to open in 2011 that will increase ceramics production capacity by 20 percent.
Vietnam is undergoing rapid urbanisation that is seeing a transformation of both primary and secondary cities and urban areas. The construction materials sector has been among the fastest growing economic sectors over the past five years, a trend that is expected to continue.
Andy Ho, VinaCapital's Head of Investment, says: "We believe Prime Group has solid management and an established reputation in the marketplace. Most importantly, it can rely on economies of scale to offer the best products at competitive prices. The construction sector has been boosted by Vietnam's rapid urbanisation of over 3 percent yearly, which is a long-term trend providing a solid foundation for Prime Group's future growth."
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 March 2010. VinaCapital Investment Management Ltdmanages three closed-end funds trading on the AIM Market of the London Stock Exchange. These are:
· Vietnam Opportunity Fund (VOF) is a USD789 million diversified investment fund that has consistently been among the top performing Vietnam funds.
· VinaLand Limited (VNL) is a USD685 million real estate fund that was the top performing Vietnam investment fund in 2008.
· Vietnam Infrastructure Limited (VNI) is a USD258 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 Vietnam Infrastructure Limited is available at www.vinacapital.com/vof.
Enquiries:
Michael L. Gray
VinaCapital Investment Management Limited
Communications
+84 8 821 9930
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 2072697204
Philip Secrett
Grant Thornton Corporate Finance, Nominated Adviser
+44 20 7383 5100
This information is provided by RNS
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