Vingroup Joint Stock Company (“Vingroup”), Vietnam’s largest private-sector real estate operator and one of the largest companies by market capitalization listed on the Ho Chi Minh City Stock Exchange under securities code VIC, today announced that a consortium led by an affiliate of Warburg Pincus (the “Warburg Pincus consortium”), a leading global private equity firm focused on growth investing, has committed to invest US$200 million in a strategic partnership with Vingroup to substantially build out Vingroup’s retail property business (“Vincom Retail”).
Comprised of seven assets valued at approximately US$1.1 billion, Vincom Retail is Vietnam’s largest owner and operator of shopping malls, which include world class shopping, recreational and dining facilities.
Vingroup and the Warburg Pincus consortium have entered into definitive agreements for the consortium to invest US$200 million to acquire an approximately 20% equity interest in Vincom Retail. In addition, representatives of Warburg Pincus will join the board of directors of Vincom Retail and the board of directors of Vingroup. The definitive agreements also include a commitment from Warburg Pincus to participate in future capital raising by Vingroup in an amount of up to US$25 million, and an opportunity for the Warburg Pincus consortium to invest an additional US$100 million in Vincom Retail to expand the platform and explore future retail property-related opportunities. Subject to the satisfaction of certain closing conditions, the parties expect the first stage of the transaction to close by the end of the second quarter.
This transaction marks the first investment by Warburg Pincus in Vietnam, and it is the largest initial investment to date in a Vietnamese company by a global private equity firm. This investment by the Warburg Pincus consortium is the latest success for Vingroup in raising funds from global capital markets and follows on from Vingroup’s US$300 million convertible bond issuance to international investors in 2012.