VAF Exit its Investment in Masan Food

Mekong Capital announced that Vietnam Azalea Fund Limited had entered into an agreement to divest 100 per cent of its investment in Masan Food Corporation in a negotiated OTC market transaction at a total consideration of US$18.84 million. This transaction resulted in a gross return multiple of 2x and a gross IRR of approximately 61 per cent on the shares sold by the Fund over the 18 month period that the Fund held this investment.

 

Dr. Thomas Lanyi, Director of Investment of Mekong Capital, expressed: “Masan Food is one of the best managed consumer goods companies in Vietnam today. The company’s ability to early identify new consumer trends and successfully launch new products into this fast growing market is impressive and has created significant shareholder value.”

 

In addition, Mr. Chris Freund, Managing Partner of Mekong Capital, commented: “Masan Food has grown from around $23 million in net profit in 2008 to an expected net profit of around $55 million in 2010, a net profit growth rate of around 55% per year. The 61% IRR achieved by the VAF on this investment is closely linked to the net profit growth achieved over the period of the Fund’s investment.”