Mekong Capital divesting from Loc Troi after 9 years

By Minh An - Jul 28, 2017 | 07:44 AM GMT+7

TheLEADERAccording to Deal Street Asia, Mekong Capital's VAF Fund has sold 75% of its investment in Loc Troi Group to earn US$9.2 million.

Mekong Capital divesting from Loc Troi after 9 years
Lộc Trời is the largest public agricultural company to list its share. (Photo: Internet)

The transaction price is VND68,000 (roughly US$3) per share, 28% higher than the closing price of LTG on Upcom, HNX on July 26th.

The buyer’s name has not been published yet, but it supposedly is a listed stock investment fund in Asia. The fund also agreed to buy the remaining 25% in September 2017.

Mekong Capital has invested US$4.4 million in Loc Troi since 2008. After nine years, the investment generated a gross profit of 3.5 times.

Since operating under the name of An Giang Plant Protection Joint Stock Company, Loc Troi has defined and developed the value chain of agricultural production, from research to production and consumption of agricultural products, especially rice.

In 2017, Loc Troi targets its revenue at VND8,2 trillion and its profit after tax at VND460 billion.

After the first six months, Loc Troi has reached VND4 trillion of net sales (increasing by over 14% compared with the same period of last year) and VND173 billion of profit after tax (increasing by nearly 4%).