Mekong Capital’s Vietnam Azalea Fund is looking at exiting from its current portfolio with the recent divestment being in real estate company Intresco. Meanwhile, Vietnam’s steelmaker Hoa Sen looks to invest $3.8 billion in a steel mill project. Also, property developer Bitexco has hiked its stake in a hotel operator.
Mekong Capital completes exit from Intresco
Data from the Vietnam Securities Depository show that Ho Chi Minh City-based Future Architecture Design JSC purchased the 7.06 million shares that Mekong Capital’s Vietnam Azalea Fund divested. The fund was also the seller of 6.67 million Intresco shares to this designing firm a year ago.
Following the two transactions, Future Architecture Design currently holds 20 per cent stake in Intresco.
Post this transaction, Vietnam Azalea Fund has interest in only three investees: crop protection chemicals manufacturer Loc Troi Group, Phu Nhuan Jewelry and pharmaceutical firm Traphaco. The fund, which manages $64 million, term ends in 2017 and it is looking to divest from its portfolio.
In 2014, Chris Freund, founder and managing partner of Mekong Capital, was quoted as saying that Intresco was a less profitable investee. After the 2008 investment, Intresco suffered losses of VND137.4 billion ($6.16 million) in 2011 and VND297.2 billion in 2013. The company failed to make up for the losses in subsequent years.
Steel firm Hoa Sen plans $3.8b investment in abandoned project
Hoa Sen Group, one of Vietnam’s biggest steelmakers, is mulling a $3.8 billion investment in a long-abandoned steel mill complex in the central province of Ninh Thuan, according to a Thanh Nien News report.
The Hoa Sen Ca Na-Ninh Thuan Steel Mill Complex, as it is officially known, was originally developed by state-owned shipping giant Vinashin and Malaysia’s Lion Group with a projected cost of $9.8 billion.
The foreign investor backed out one year after the project was licensed in 2008 and local authorities revoked it in 2011.
According to Hoa Sen’s plan, which will be put forward at its shareholders’ meeting this September, the complex will cover more than 1,700 hectares to house a steel mill with an annual output of 6 million tonnes and a solar panel plant among other facilities.
Bitexco acquires major stake at Huong Giang Tourist
Financial details of the deal were not disclosed. Huong Giang Tourist is a state-owned hospitality business based in the central city of Hue. Even as the company has recorded successive losses over the last couple of years, it is operating several hotels and resorts. The firm is currently linked to 16 subsidiaries and affiliates in the industry, according to its website.
In 2015, Huong Giang Tourist and Bitexco teamed up to launch a joint venture to develop a luxury resort in Hue.
Bitexco is the developer of dozens of realty projects across Vietnam, with a flagship product of the 68-storey Bitexco Financial Tower – the tallest building in Ho Chi Minh City.
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