VN Dealbook: Mekong Capital wins PEI award for Cong Vang deal; The Pan Group to sell sanitary service unit to Japanese partner

Visual from Cong Vang (Golden Gate) website.

Private equity firm Mekong Capital has won the PEI Operational Excellence 2015 award in the Asia Pacific’s small cap category for its investment in Vietnamese restaurant operator Cong Vang (Golden Gate Group) in 2008 and its successful exit last year. Meanwhile, agro-business investment firm The Pan Group, formerly Pan Pacific Group, has announced to sell its sanitary service unit to Japan’s Nihon Housing Co Ltd.

Mekong Capital wins PEI award for investment in Cong Vang

Vietnam-based private equity fund Mekong Capital has won the PEI Operational Excellence 2015 prize, granted by the Private Equity International magazine, for its investment and divestment of restaurant operator Cong Vang (Golden Gate).

The fund is the winner in the Asia Pacific’s small cap fund category.

The calibre of the 2015 entries was extremely high, the PEI said, citing  Suvir Varma, a partner in Bain & Company’s South East Asia practise and a judge in the Asia-Pacific region. “Last year there were some slam-dunk winners but this time, in most categories, there were really hard decisions to be made.”

The $2.6-million investment for around 10 per cent in Cong Vang was executed by the Mekong Enterprise Fund II in April 2008. In 2014, Mekong Capital announced to successfully divest from the owner of local famous chains such as hotpot restaurants Ashima, Kichi-Kichi and SumoBBQ, and beer club Vuvuzela. The fund reported a net return of 9.1 times of the investment.

Meanwhile, Cong Vang grew from only five restaurants to 67 during the period of Mekong Capital’s investment. The company said, it expected to bring the corporate value to $200 million by 2018, following the $35-million investment of Standard Chartered Bank’s private equity arm for an undisclosed major minority stake in September 2014. The total number of restaurants that Cong Vang is operating has reached 111 outlets nationwide.

Related stories:

Exclusive: Mekong Capital raises $87m for its fourth fund, to begin making investments ‘within weeks’

VN’s Mekong Capital wins Frontier Market Firm of the Year

The Pan Group to sell sanitary service unit to Japanese partner

The Pan Group, formerly Pan Pacific, has announced that it will sell its holdings in two units of the wholly-owned sanitary service subsidiary Pan Services to Tokyo-based Nihon Housing Co Ltd.

The divestment is in line with its intent to focus on its core food business.

Pan Services, a cleaning service provider with 40 per cent market share, brought a VND13.1 billion ($584,800) profit for the group in the first half of this year. The company caters to office space and healthcare facilities.

The parent group is an established agro-business and food firm holding 42 to almost 100 per cent stake in VinaSeed, Southern Seed Company, Aquatex Ben Tre, confectionery firm Bibica, Long An Food Processing Export JSC and Pan Food.

The Pan Group has also announced plans to set up a retail subsidiary.

Related stories:

IFC invests $6.5m in Vietnam’s Pan Pacific

Pan Pacific has a mission to invest in agriculture: Nguyen Duy Hung

Pan Pacific boosts investment in subsidiaries

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.