French fund invests $12m in Tra Vinh chemical firm

TRA VINH — The Jaccar Fund Management Co's Viet Nam Century Fund will invest US$12 million in the Mylan Group, pursuant to an agreement concluded on Saturday.

The investment – which would fund a new chemical plant, a optoelectronic materials company and other operations for Mylan – would give the Viet Nam Century Fund a 30-per-cent stake in the group, which is located in Tra Vinh Province's Long Duc Industrial Park and has a charter capital of VND80 billion (US$4.1 million).

The new chemicals production facility was slated for completion in the third quarter of next year, while the newly formed Optomaterials and Processes Co would enter into a first phase of research and development in 2012 on thin-film products for use in optics, electronics, digital printing and packaging.

Mylan Group's other affiliates include Canada-based American Dye Source Inc, which conducts R&D on polymers and nano materials. Mylan Chemicals, meanwhile, produces optoelectronic and digital printing products, and the Mylan Printing Media Corporation is the patent holder and sole producer of thermal computer-to-plate (CTP) offset-printing plates in Viet Nam.

According to Mylan Group chairman Nguyen Thanh My, Jaccar was expected to assist the group with corporate restructuring and governance, as well as development strategy.

He also expected the group to list on the stock exchange in 2011.

"We have invested in various sectors and locations throughout Viet Nam and Mylan Group is one of our important investments in Viet Nam's southern region," said Jaccar CEO Jacques de Chateauvieux.

Jaccar has three funds in Viet Nam. The $150 million Jaccar Capital Fund was set up in 2006 and invests in a range of public companies; the $20 million Viet Nam Opportunity Growth Fund was formed in 2007 and focuses in listed companies; and the US$100 million Viet Nam Century Fund was established in 2008 and targets private equity investments.

This fund's first investment was in $11 million worth of convertible bonds issued by property developer Hoang Anh Gia Lai. Mylan Group would mark the fund's second investment.

Jaccar, listed on the Paris stock exchange, has also directly invested in a number of infrastructure and real estate projects in both Viet Nam and China. — VNS