Cultivating from our experience
We’ve found selling investments to be particularly easy, especially for well-managed companies that have implemented most or all of Vision Driven Investing. We have completed 27 full exits, through a full range of exit routes: trade sales to strategic investors, sale to other PE funds, listing on the stock market and selling to other public equity funds, or sometimes sales back to the founders.
Mobile WorldRetail chain
In January 2018, Mekong Enterprise Fund II completed the sale of all of its shares in MobileWorld after a 10.5 year holding period. MobileWorld has established itself as Vietnam’s market leader in mobile device retail through its Thegioididong.com store network, and consumer electronics and household appliance retail under the DienmayXANH store network. The company is rapidly expanding its 3rd retail concept, mini-supermarket chain BachhoaXANH, in Ho Chi Minh City. The Fund originally invested in MobileWorld in May 2007 when the company operated around 7 stores. By the time the Fund completed its exit in January 2018, the company was operating more than 2,000 store locations. This tremendous growth led to a 57x return multiple for the fund over the lifetime of the investment.”
Mekong’s investment in MobileWorld is the subject of a 3-part case study written by the National University of Singapore (NUS) and published in the Ivey Publishing case study catalogue in May 2018. The 3 cases are available at Ivey Publishing’s website at the following links:
- Mekong Capital and Mobile World (A): Growing a US$100 Million Company In Vietnam
- Mekong Capital and Mobile World (B): Bob Willett
- Mekong Capital and Mobile World (C): Venturing into New Countries and Segments
International Consumer Product (ICP)FMCG
In February 2011, Mekong Enterprise Fund II Ltd has successfully divested 100% of its investment in International Consumer Products (“ICP”) to a strategic investor, Marico Ltd., a publicly listed consumer products company based in India. The Fund had invested in ICP in October, 2006.
Golden GateRestaurant chain
In August 2014, Mekong Enterprise Fund II completed the sale of all of its shares in Golden Gate, one of the leading restaurant chain operators in Vietnam. The Fund originally invested in Golden Gate in April 2008. The Fund achieved a 9x return on its investment over the 6 ½ year holding period, driven by the expansion of Golden Gate from one brand with 7 restaurant locations at the time of the investment to more than 10 brands with around 75 restaurant locations by the time of the exit.
Mekong’s investment in Golden Gate was the subject of a case study written by INSEAD and published in March 2016. The case study is available here: PE in Emerging Markets: Can Mekong Capital’s Operating Advantage Boost the Value in its Exit from Golden Gate Restaurants?
Masan Food CorporationFMCG
In November 2010, the Fund divested 100% of its shares through a negotiated block transaction on the OTC market. The Fund originally invested into Masan Food, the leading maker of branded sauce and seasoning products and a major player in the large instant noodles market, in May 2009.
Vietnam Australia International SchoolEducation
In 2017, Mekong Enterprise Fund II completed the sale of all of its shares in Vietnam Australia International School (“VAS”), the leading private bilingual dual-curriculum K-12 education service provider in Vietnam. The Fund originally invested in VAS in April 2010.
In November 2017, Vietnam Azalea Fund completed the sale of all of its shares in Traphaco, a vertically-integrated pharmaceutical company specializing in the development, marketing and distribution of Vietnamese traditional medicines. The Fund originally invested in Traphaco in December 2007
In December 2008, Mekong Enterprise Fund sold its stake in Saigon Gas to the French oil and gas giant, Total Group, who acquired 100% of the company concurrently. This was Mekong Capital’s first divestment. Foreseeing the consolidation trend in Vietnam’s LPG market and understanding the industry dynamics, we worked closely with the company to make it attractive to strategic buyers, focusing on its distribution network, strong brand, and transparency in financial reporting. As a result, MEF managed to complete the exit at attractive valuations, even in the midst of a global financial crisis.