Denmark-based BankInvest Group has invested US$2 million in a Ho Chi Minh City wood processing company, Duc Thanh, via its manager Private Equity New Markets (PENM) on May 23, 2007.
Under the deal, BankInvest will help the local firm plan a 5-10 year business development strategy and offer consulting services for its plan to list on the local stock exchange late next year or in early 2009 at the latest.
The Duc Thanh firm operates two factories and plans a third in southern Binh Duong Province. Up to 90 percent of its products, mainly kitchenware and wood furniture are exported to Japan, South Korea and Germany.
The US$18.5 million Mekong Enterprise Fund, an arm of Mekong Capital – a Vietnam-focused fund manager owns a share in the wood processor under an acquisition deal worth US$1.75 million in 2005.
