Mekong Capital backs Vietnamese food company

The Vietnam-focused private equity firm has invested $9.4m in Masan Food through its $100m Vietnam Azalea Fund, which has $36m left to deploy. The business manufactures foods such as noodles, sauces and condiments.

Mekong Capital has invested in $9.4 million for a minority stake in Masan Food Corporation, a Vietnamese food company.

Masan Food manufactures foods such as noodles, sauces and condiments in Vietnam. Its products include fish sauce, soy sauce, chilli sauce, instant noodles and granules sold under brands such as Chin-Su, Tam Thai Ti and Nam Ngu.

Chin-Su: part of Masan's stable

Thomas Lanyi, a director at Mekong Capital, said in a statement that Masan Food’s branding skill, research and development capability and wide distribution network were compelling reasons to invest.

The investment was made out of the $100 million Vietnam Azalea Fund, which has deployed $64 million to date, including the recent investment in Masan Food.

The fund takes minority stakes in late stage companies, which are less than 24 months away from going public or are already listed.

The fund expects to list when it is fully invested, according to the firm’s website. The firm prefers to invest in consumer related sectors, such as the food and beverage segment, and is likely to make more investments in that space, it said.

In December 2008, Mekong Capital exited its investment in liquefied petroleum gas distribution company Saigon Gas Holdings to Total, a global oil and gas company, for an undisclosed amount.