VinaCapital Vietnam sells stake in Keating Capital Partners

VinaCapital Vietnam Opportunity Fund (VOF) has agreed to sell its stake in Keating Capital Partners, the investment firm announced Thursday.

The AIM-traded company will receive $32.6m in cash for the sale of its ownership in Keating Capital to SCG Building Materials Company, a wholly-owned subsidiary of Siam Cement Public Company.

The sale of the interest in the business development company represents an internal rate of return of 33% following a three-year holding period. The divestment will add eight cents to VOF's net asset value per share at December 31st.

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Keating Capital is the holding company for one of Indochina's leading construction material manufacturers with six ceramic tile factories and a nationwide distribution network resulting in a 20% market share.

The manufacturer reported $170m in revenue for 2011 along with $44m earnings before interest, taxes, depreciation, and amortization and $10.5m in profit.

Andy Ho, VOF's Chief Investment Officer, said: "This significant divestment is indicative of the quality of VOF's portfolio and provides further evidence to support our belief, that VOF's share price to net asset value discount is too wide. We continue to execute solid exits which showcase the value of VOF's portfolio, not currently being reflected at the company's current share price. Proceeds from this divestment are currently being considered for a few major private equity investment opportunities."

VOF, a leading asset management and real estate development firm in Vietnam, has a $1.5n portfolio of and a market capitalisation of $497.95m.

Shares were up 0.36% to $1.74 at 15:00 Thursday.

RD