Diageo buys 23% stake in Vietnam spirits producer Halico

The world's largest spirits company buys a 23.6% stake in Hanoi Liquor Joint Stock Company (Halico) from VinaCapital's Vietnam Opportunity Fund for $51.6 million in cash.

Diageo, the world's largest spirits company, is boosting its presence in Vietnam with a decision to acquire a 23.6% stake in Hanoi Liquor Joint Stock Company Halico from VinaCapital Vietnam Opportunity Fund VOF for $51.6 million in cash.

The price represents an exit multiple of 5.3 times the price VOF paid in December 2006, or an internal rate of return of 67.4%, proving that it is possible for private equity firms to exit their investments in Vietnam. This has been a point of concern for some potential investors.

Proceeds from the sale will be added to the firm’s net asset value NAV by March 2011. VOF's NAV is expected to increase by...

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