Kyohei Hosono, who represents the investment of Japan’s private equity firm Dream Incubator Inc and its DI Asian Industrial Fund LP in Viet Nhat Medical Instrument JSC (JVC), has replaced Le Van Huong to be the company’s chairman, after Huong was arrested for his alleged financial frauds.
Huong was also holding the position of JVC’s chief executive. Nguyen Huu Hieu has been appointed to replace him.
Concerns have been raised since mid June, when the company stock price plummeted due to rumours about its opaque operation. The price continuously fell, to reach VND9,900 ($0.46), from around VND23,000.
In addition, a group of foreign funds, that includes Amersham Industries Limited – a unit managed by Dragon Capital, and two Irish funds Balestrand Limited and DC Developing Markets Strategies Public Limited Company, have reduced their holdings in JVC – from a combined stake of 9.21 per cent to 8.83 per cent.
Meanwhile, Vietnam Holding Limited purchased more than 695,000 shares to increase its stake to 5.13 per cent.
Hosono, the new chairman, has affirmed that the company is operating normally, and that the Japanese fund will continue to accompany JVC in the long term.
“A four-year strategic partner of JVC, Dream Incubator – including myself – has been actively supporting the company in its expansion and development of new business models. […] There are reasons to believe in JVC’s sustainable growth,” Hosono said in a letter released Wednesday night.
“As a Japanese investment fund, we had evaluated this company very carefully before entering the partnership,” he added.
JVC has a long operation period of 15 years, a strong clientele and qualified staff, who received training in Japan sponsored by Dream Incubator.
“We retain tight relationships with almost all clients and distributors,” Hosono said, adding that particularly, Japanese partners are confident in the new leaders.
Hosono has worked in the public and private investment sector for more than 20 years, including five years in Vietnam. He is a Michigan University’s master of public policy graduate, with a bachelor degrees in Russian language from Tokyo University and international relation from St. Petersburg University.
Meanwhile, the new CEO, Hieu, has eight years working for JVC as sale director. In the past few years, he was helping to expand the business network in the south of Vietnam.
JVC aims to boost its revenue and profit in 2015 by 25 per cent and 39 per cent, to reach VND1.4 trillion and VND305.76 billion, respectively.