U.S.-based investment group Global Emerging Markets (GEM) on November 6 clinched a deal worth US$80 million, equivalent to VND1.7 trillion, to invest in stocks of Hoang Anh Gia Lai (HAGL) Group.

The two companies expected to complete the investment commitment in the next three months.

HAGL chairman Doan Nguyen Duc said the foreign investor could buy HAG shares via transactions on the Hochiminh Stock Exchange rather than issuing extra shares equivalent to a 10% stake at the local enterprise.

GEM plans to pour US$200 million in Vietnam and the investment in HAGL is the biggest part of the investment pledge for this market.

The investment deal was arranged by the U.S.’s Asia Global Capital Group and local investment firm Bamboo Capital Group. They were also the consultants for an investment deal between GEM and another local group Duc Long Gia Lai (DLG).

HAGL currently manages more than 100,000 hectares of land in Indochina and 75,000 hectares of it has been used to grow rubber trees, sugarcane, corn, and palm trees. The multi-sector conglomerate is building a palm oil processing plant in Cambodia.

Besides, HAGL recently has cooperated with local dairy farming and food processing enterprises for a big-ticket project to breed cows in the Central Highlands region of Vietnam, Laos and Cambodia for domestic sale and export.

GEM is a global diversified investment group of US$3.4 billion, which has successfully invested in 365 transactions in 67 countries and territories. Its investment funds include CITIC/GEM Fund, VC Bank/GEM Mena Fund, Kinderhook, GEM Global Yield Fund, GEM India Advisors, and Brazil PE Fund.

SGT/VNN