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Mekong Capital fund sells 5.6m MobileWorld shares

Update: April, 28/2014 - 08:38
After this transaction, Mekong Enterprise Fund II continues to hold 14.3 per cent of MobileWorld's shares. — Photo cafef

HCM CITY (VNS)— The Mekong Enterprise Fund II, managed by Mekong Capital, has sold 5.647 million shares of MobileWorld Investment Corporation, equivalent to 9 per cent of the company's issued shares, in a pre-listing share placement.

At a placement price of VND85,000 (US$4) per share, and including dividends received, this is a 21.8-fold increase from the adjusted price per share of the fund when it originally invested in the company in 2007.

With about 62.74 million shares in issuance, the company value based on this transaction is VND5.33 trillion (US$254 million). The company targets a net profit of VND435 billion ($20.7 million) this year.

Shareholders have approved a plan to list on the HCM City Stock Exchange in July.

After this transaction, Mekong Enterprise Fund II continues to hold 14.3 per cent of MobileWorld's shares.

The placement, managed by Viet Capital Securities Corp, was allocated to six foreign institutional investors plus Vietnamese retail investors.

Mobile World is Viet Nam's leading mobile device retailer. The company's TheGioiDiDong subsidiary has 220 mobile-device stores in all 63 cities and provinces, with about 22 per cent market share in mobile phone sales.

The company's Dienmay subsidiary has 13 consumer electronics stores, concentrated in the south and HCM City.

Launched in 2006, the Mekong Enterprise Fund II is the second of three private equity funds managed by Mekong Capital.

The fund made 10 investments of which six have been fully exited. Its remaining four investments include Golden Gate (restaurants), Mobile World (retail), Asia Chemical Corp (chemical distribution) and Vietnam Australia International School. — VNS

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