Vietnam Opportunities extracts itself from chicken farm
Vietnam Opportunities extracts itself from chicken farm – VinaCapital Vietnam Opportunity Fund has reached an agreement with Ba Huan JSC, a Vietnamese poultry producer, to cease its
investment, with all capital being returned to the fund.
In February 2018, VinaCapital Vietnam Opportunity announced that it had invested USD32.5 million to acquire a significant minority stake in Ba Huan. Due to different interpretations of key terms by both parties, the manager came to the conclusion that it would not be able to play a constructive role in helping Ba Huan grow as anticipated. The manager has determined that it can better deploy capital in other opportunities.
At the time of the original announcement, Andy Ho, VOF’s manager, said “We look forward to working with Ba Huan’s management team to help implement new management practices, improve governance…”.
Ba Huan JSC was founded in 2001, growing from a family business to become the leading supplier of pasteurized poultry eggs in the Vietnamese market. The company operates two fully enclosed industrial poultry farms, including a layer farm with over 1.5 million chickens for commercial egg production, and a broiler farm with over 400,000 chickens for meat production. These farms are qualified to local and international food safety standards and practices such as Hazard Analysis Critical Control Point (HACCP) and VietGap, are well-organised to ensure proper distance between sub-farms, and equipped with semi-automated systems for feeding, watering, ventilation, and heating. Each day, Ba Huan supplies over 1.7m eggs, delivers over 15,000 chickens, and processes over 25 tons of fresh poultry meat.
VOF : Vietnam Opportunities extracts itself from chicken farm