Vincom Retail gets more Warburg Pincus investment
Vincom Retail gets more Warburg Pincus investment
Vingroup Joint Stock Company said a consortium led by an affiliate of Warburg Pincus invested a follow-on amount of about US$100 million in Vincom Retail on June 29.
Vincom Retail is a subsidiary of Vingroup. The group said the total investment by the Warburg Pincus consortium was now $300 million, making it one of the largest investments by a private equity firm in Viet Nam.
The Warburg Pincus consortium made the first investment of $200 million to help build Vincom Retail in May 2013.
Vincom Retail, considered to be the largest shopping mall operator in Viet Nam, has 20 malls in operation or under development in prime locations nationwide.
The existing prime assets of Vincom Retail include Vincom Dong Khoi and Vincom Thu Duc in Ho Chi Minh City, Vincom Ha Long in Quang Ninh Province, Vincom Ngo Quyen in Da Nang City, and Vincom Ba Trieu, Vincom Long Bien, Vincom Mega Mall Royal City and Vincom Mega Mall Times City in Ha Noi.
The chains have attracted more than 700 domestic and international brands, such as Robins Department Store, Marks & Spencer, CJ CGV, and Mango, as well as DKNY, French Connection (FCUK), BCBG Maxazria and Karen Millen, besides GAP, Lacoste, Nike and Adidas, in addition to Emigo, VinMart, VinPro and Vinpearl Land.
The group's CEO Duong Thi Mai Hoa said Vincom Retail has more than tripled the of its portfolio since it first partnered with Warburg Pincus two years ago.
The follow-on investment by the Warburg Pincus Consortium was more proving the group's strong performance, Hoa said.
At the same time, Managing Director of Warburg Pincus Jeffrey Perlman said they believed in the long-term economic prospects of Viet Nam on the back of continued urbanisation and emerging middle class consumption. He said Vincom Retail was poised for strong growth over the next five years, adding that they would continue to work closely with the Vingroup and Vincom Retail management teams to build the pre-eminent retail franchise in Vietnam.
Founded in 1966, Warburg Pincus is a leading global private equity firm that focuses on growth investment, and manages more than $35 billion in assets. It has raised 14 private equity funds that have invested in excess of US$50 billion in more than 720 companies in more than 35 countries.
The firm has a proven track record as an investor in the consumer and retail sector globally and in Asia, building successful businesses and leading brands such as CAR Inc., Kidswant, Intime Department Store, and Red Star Macalline, as well as Franshion Properties and 7 Days Inn.
Meanwhile, Vingroup announced market capitalisation of $3.2 billion, as of June 24, 2015.
On June 29, each VIC share ended at VND42,800 ($1.97) on the HCM City Stock Exchange.
