Warburg Pincus and Credit Suisse AG, have converted their preferred stocks, which they held after the $300 million investment into Vincom Retail, to collectively hold 20.22 per cent of the Vietnamese retailer.
The global private equity firm, through its WP Investments III fund, currently holds a 15.17 per cent stake in Vincom Retail after the transaction, while Credit Suisse owns 5.05 per cent.
Prior to the stock conversion, Warburg Pincus had 75 per cent of the company’s total preferred shares and only 0.0002 per cent of ordinary shares. Credit Suisse held 25 per cent preferred stocks and 0.0001 per cent ordinary shares.
In conjunction with the announcement of new major shareholders, Vincom Retail said late last week that Jeffrey Perlman, Warburg Pincus’ head of Sotheast Asia, had stepped down as an independent board member, and Li Fan, principal at the PE firm, was no longer a member of the supervisory board.
In 2013, Warburg Pincus made its first investment in the Southeast Asian country with a $200 million co-funding into the retail arm of realty major Vingroup. It added a $100 million follow-on round in 2015, making its total investment the biggest private equity deal in Vietnam at that time.
Vincom Retail is the largest shopping mall operator in Vietnam, with over 40 retail outlets across the country as of July 2017. It earned a profit before tax of about VND1.45 trillion ($64 million) in the first six months of this year.
The company has submitted for a listing of its 1.9 billion shares on the Ho Chi Minh Stock Exchange without divulging a valuation. Vingroup will remain as a major shareholder after the IPO, it said.
The listing could fetch $600 million, a value considered as the largest offer by a private company in Vietnam, according to Bloomberg.
Vingroup to list retail unit on Ho Chi Minh City Stock Exchange
Warburg Pincus consortium adds $100m as follow-on investment in Vincom Retail