Vien Dong Pharmaceuticals Company (DVD) has completed the private placement of 3 million shares to its Danish strategic partner, BankInvest’s Private Equity New Markets (PENM) fund, at a price of VND80,500 (US$4.40) per share.
With this acquisition, the fund increases its holdings in the pharma to 3.6 million shares, equivalent to over a 30 percent stake and enabling it to elect a member to the company’s board of management.
"Many partners registered for this share offering but the PENM Fund was chosen for its financial prestige and long-term investment strategy in the company," said DVD General Director Le Van Dung, who noted that PENM was committed not to resell the shares for at least 12 months.
PENM is a $900-million private equity fund established by Danish BankInvest Corp. in 2006. PENM’s investment focus is on private, non-listed Vietnamese companies with a proven track record and a strong future development potential.
"BankInvest has confidence in Viet Nam’s economic development," said fund director Hans Christian Jacobsen. PENM was committed to supporting DVD’s development with its international network and experience in the pharmaceuticals industry, Jacobsen said.
DVD charter capital currently stands at VND119.1 billion ($6.4 million), and it gained a capital surplus of VND211 billion ($11.4 million) through this issue.
The capital raised would be used to promote technology transfer, licensing, research and development, as well as to fund construction of the Lili of France joint venture factory and other business extension projects over the next two years, Dung said.
DVD posted a net profit of VND90.7 billion ($4.9 million) in the first 11 months of 2009. It projects a profit of VND100 billion ($5.4 million) for the entire year for an earnings-per-share figure of VND11,200 ($0.60).
Early next year, the company plans to issue an additional 7 million shares to existing shareholders at a ratio of 100:55. DVD shares closed yesterday at VND81,000 ($4.40).