Mekong completes exit from Vietnam's Loc Troi

The PE firm sold its remaining 1.49% stake in the company, about one million shares, on the Unlisted Public Company Market for VND68,000 per share. Mekong exited the majority of its holding earlier this year when the company went public, selling 3.1 million shares at the same price. The investment has generated a gross return multiple to 3.6x and a gross IRR of 18.7% in US dollar terms, according to a release.

Mekong committed $4.4 million to Loc Troi – then called An Giant Plant Protection – in December 2008, investing from the Vietnam Azalea Fund, a vehicle launched in 2007 to focus on pre-IPO investments. Loc Troi was one of seven companies supported by the fund; all but one, pharmaceutical company Traphaco, have now been exited.

Loc Troi was established in 1993 as a crop protection chemicals business based in the Mekong Delta and has since expanded across Vietnam. The company's distribution network comprises 25 branches, more than 5,000 dealers, and a team of agricultural engineers who provide technical support services to farmers. Loc Troi is also Vietnam's second-largest seed supplier.

Loc Troi reported revenue of VND7.78 trillion in 2016, a slight decrease on the previous year, although sales have grown about 60% since 2011. Net profit came to VND347 billion in 2016, up from VND319 billion in 2015.

Mekong is currently deploying its fourth vehicle, Mekong Enterprise Fund III, which closed at $112 million in May 2016. Investments from the fund include a commitment to express delivery service Nhat Tin Investment Trading Development and a $4.9 million round in education services provider Yola.

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• Topics
• Southeast Asia
• Open market
• Industrials
• Vietnam
• Mekong Capital
• Agriculture
• Exit