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Fund sells stake in VN furniture firm
Mekong Enterprise Fund’s stake in Duc Thanh Wood Processing Joint Stock Company has been sold to a Vietnamese strategic investor by Mekong Capital, which manages the fund.
Neither the sale value nor the name of the buyer has been disclosed.
The fund had put US$1.75 million in the furniture firm.
Following the investment, the fund made contributions to business strategy and human resource improvement as well as listing preparations, according to the company’s chairwoman Le Hai Lieu.
Since Mekong Enterprise Fund became an investor in February 2005, Duc Thanh’s annual revenues and net profit grew by between 185 and 210 per cent, respectively, through the end of 2008.
Chris Freund, managing partner of Mekong Capital, said he was pleased with the sale to a strategic investor who would support the company in continuing its business expansion.
Duc Thanh specialises in manufacturing wooden kitchenware and household products made from planted wood. It recently began producing wooden toys.
More than 90 per cent of its products are exported to markets including Japan, the US and the EU.
The $18.5 million Mekong Enterprise Fund Ltd is a Private Equity fund focusing on equity investments in private entrepreneurial businesses in Viet Nam.
Since its launch in 2002, the fund has invested in ten private companies founded and managed by private Vietnamese entrepreneurs. The fund is in its divestment stage and the process is expected to be completed by 2012.
vietnamnews
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