VinaCapital Vietnam Opportunity Fund (LON:VOF) has taken a sizeable stake in FPT Digital Retail JSC (FPTR), a leading mobile phone distributor in Vietnam.
VOF has invested US$11mln into FPTR, which was the largest investment among a group of institutions that have bought a 35% stake from the mobile phone group’s parent FPT Group.
As part of the sale, FPT has committed to list FPTR in the future.
Andy Ho, chief investment officer of VinaCapital and managing director of VOF, said: “The consumer sector is one our favourites, and Vietnamese people have shown a huge appetite for mobile phones and accessories, which is their primary tool to communicate and access the internet.
"This transaction enables us to make a meaningful investment in a premier, unlisted company at a substantial discount compared to the market and peers.”
FPT Retail is the second-largest mobile phone shop chain in Vietnam, with 14% market share nationwide and 443 stores covering all 63 provinces in the country.
Compounded annual growth in revenue and profit before tax is expected to be over 25% and 35% per annum, respectively, during the 2016 – 2019 period as smart phone penetration increase in Vietnam’s provinces.