Mekong Enterprise Fund II completes final divestment of MWG
Mekong Capital has announced that Mekong Enterprise Fund II (MEF II) completed the divestment from Mobile World Investment JSC (HoSE: MWG) for a 57x cumulative return on investment.
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MEF II originally invested $3.5 million in MWG for a 35 per cent stake in 2007. The cumulative net proceeds from the sale of MEF II’s MWG shares and dividends received was $199.4 million.
Over the 10 years and a half of holding period of this investment, it generated a return multiple of 57x in USD and an IRR of 61.1 per cent, making it one of the most successful private equity investments in the history of Asian Private Equity.
When MEF originally invested into MWG in 2007, the distributor had seven stores and a $10 million company valuation. At that time, it set the goal to increase to 50 stores and a $50 million company valuation.
Chris Freund, general director of Mekong Capital said, “It is unfortunate that we now must complete our 10.5-year journey together with MWG. Our fund—MEF II that invested into MWG—was launched in 2006 and ultimately had a 12-year term, hence we needed to complete the divestment of our remaining investments in MEF II, including MWG, in the first few months of 2018.”
During its 10.5-year holding period by MEF II, MWG has grown from seven stores to over 2,000 stores today under four different retail brands: thegioididong.com, Dien may XANH, Bach hoa XANH, and vuivui.com. The company has also recently acquired Tran Anh Digital World and the Phuc An Khang pharmacy chain.
