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Vietnam – Allen & Overy Advises Vingroup On USD200m Deal With Warburg Pincus.

30 May, 2013

 

Allen & Overy is advising Vingroup JSC (Vingroup) in relation to the Vincom Retail USD200 million deal with a consortium led by an affiliate of Warburg Pincus (Warburg Pincus). Vincom Retail is wholly owned by Vingroup and is the largest private sector real estate operator in Vietnam.

 

Warburg Pincus has committed to invest USD200m in a strategic partnership with Vingroup to substantially build out Vingroup’s retail property business in Vietnam, Vincom Retail. This will see Warburg Pincus acquiring an approximately 20% equity interest in Vincom Retail, it will also see representatives of Warburg Pincus join the board of directors of Vincom Retail and the board of directors of Vingroup. In addition, Warburg Pincus has agreed to participate in future capital raising by Vingroup of up to USD25m, and it has an opportunity to invest a further USD100m in Vincom Retail. 

 

If approved by regulators, this will be the largest initial investment in a Vietnamese company by a global private equity firm.

 

Vingroup is the largest listed real estate company in Vietnam and one of the largest listed companies on Vietnamese stock exchanges. Vincom Retail is Vietnam’s largest owner and operator of shopping malls, with seven assets valued at approximately USD1.1bn. The Warburg Pincus consortium includes Credit Suisse and Dragon Capital. The injection of capital will enable Vincom Retail to accelerate the rollout of its planned shopping mall developments as well as pursue new opportunities in high-growth urban districts in Vietnam. 

 

Duc Tran, Allen & Overy’s partner leading the deal from Hanoi, commented: “This has been a terrific deal for A&O as it is a significant investment by a global PE firm in Vietnam, and marks the first investment by Warburg Pincus in Southeast Asia since 2010. It also demonstrates confidence in Vietnam’s growing economy which is good for all business here.”

 

The Allen & Overy team supporting Duc Tran in Vietnam comprises senior associate Jeff Olson, and associates Mai Pham, Phuong Tran and Anh Le.

 

The other firms on the deal were Simpson Thacher & Bartlett also as legal advisors to Vingroup; and Freshfields Bruckhaus Deringer and YKVN as legal advisors to Warburg Pincus.

 

For further information, please contact:

 

Susan Byrnes, Allen & Overy

susan.byrnes@allenovery.com

 

 

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