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Warburg Pincus-led group places $200 mln bet on Vietnam retail growth

Jul 13, 2013

A consortium led by U.S. buyouts fund Warburg Pincus said on Wednesday it has agreed to buy around 20 percent of the retail unit of Vietnam’s Vingroup Joint Stock Co for $200 million, betting on retail growth in the Asian country.

The unit, Vincom Retail, is Vietnam’s largest owner and operator of shopping malls with seven assets valued at around $1.1 billion.

The deal is Warburg’s first investment in Vietnam, and it is the largest initial investment to date in a Vietnamese company by a global private equity firm.

Warburg said the investment in Vincom Retail should benefit from the country’s “favorable long-term economic outlook,” rapid urbanisation and growing middle class.

Warburg has the right to participate in future capital raisings by Vingroup for up to $25 million, while the consortium has the right to invest an additional $100 million in Vincom Retail for expansion and future retail property-related deals.

Citigroup was hired as the sole financial advisor to Vingroup, while Credit Suisse was sole financial advisor to Warburg Pincus.

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