Alstonia Costata Sdn. Bhd., an affiliate of South and Southeast Asia-focused private equity (PE) firm Creador, has invested VND994 billion ($43.8 million) in Vietnam’s largest mobile device and consumer electronics retailer Mobile World (MWG).
MWG is Creador’s 29th investment since inception in 2011 and its first transaction in Vietnam, according to the official announcement from Creador sent to DEALSTREETASIA.
“With a thriving young population and rising disposable income, we foresee a robust growth in Vietnam’s consumer sector,” the Creador stated in its announcement. “MWG stands out among its peers, not only because of its dominance in offline retailing, but also its market-leading position in online retailing with 16% market share currently.”
Vietnam-focused private equity firm Mekong Capital earlier announced that its Mekong Enterprise Fund II (MEF II) made a full exit from its investment in Mobile World Investment Joint Stock Company (MWG) at a returns multiple of 57x and IRR of 61.1 per cent after over the 10.5 years holding period of this investment.
The final block of 5 million shares was sold at a price of VND165,000 ($7.3) per share and completed on 29 January 2018. The cumulative net proceeds from the sale of MEF II’s MWG shares and dividends received was $199.4 million.
Creador focuses on long-term investments in growth-oriented businesses in South- and Southeast Asia. It is one of the most active PE firms in Southeast Asia and India and closed its third fund in 2017.
The PE firm manages assets worth $875 million across its three funds. In India, it has backed around 10 companies and is currently investing from its $415-million third fund.
In November 2017, Creador announced its investment in publicly-listed Ujjivan Financial Services Ltd, picking up a five per cent stake for Rs 215 crore from Cinnamon Capital.
Prior to that, it had invested Rs 275 crore in hospital chain Paras Healthcare for a 20 per cent stake. It had also invested in Ahmedabad-based pharmaceutical company Corona Remedies Pvt. Ltd.
Founded by a team of 5 co-founders in 2004, MWG initially established itself as the market leader and most prominent mobile device retailer in Vietnam, specializing in mobile phones, tablets, laptops, accessories and other related products through its thegioididong.com store network.