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Mekong Capital sells stake in local wood exporter
Mekong Capital announced Wednesday the sale of Mekong Enterprise Fund’s stake in furniture maker Duc Thanh to an unnamed Vietnamese investor.
Mekong Capital usually retains its investment for four or five years in local businesses before selling it, said the firm’s director of operations Truong Dieu Le. She said the firm had invested US$1.75 million in the local wood products exporter in 2005.
“Even though we had expected that the fund would exit our company someday, we are very sad when this day comes as the practical contributions of the fund to the breakthrough growth of Duc Thanh over the past few years are undeniable”, said Duc Thanh’s chairwoman Le Hai Lieu.
Lieu said with the $18 million fund’s equity capital investment, the firm had contributed to help Duc Thanh’s business strategy development, human resources investment, and listing preparations.
Since it received the investment and support, Duc Thanh’s revenues and net profit have grown by 185 percent and 210 percent, respectively, through the end of 2008, according to the firm.
Duc Thanh specializes in manufacturing wooden kitchenware and household products made from planted wood. More than 90 percent of Duc Thanh’s products are exported to Japan, the US, the European Union and other countries.
The fund has invested in ten Vietnamese private enterprises since 2002. The fund is in its divestment stage and is in the process of divesting its investments, which is expected to be completed by 2012.
It had exited another Vietnamese firm Saigon Gas late in 2008, selling its shares to France-based Total.
Mekong Capital, which has been managing the $50 million Mekong Enterprise Fund II since 2006, is in the process of launching a $150 million fund III later this year.
Minh Quang
thanhnien
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