SCPE invests $90 mln in Vietnamese agribusiness firm

Standard Chartered Private Equity has acquired a minority stake in An Giang Plant Protection Joint Stock Company. AGPPS is a distributor of plant protection chemicals and rice seeds in Vietnam.


Standard Chartered Private Equity (“SCPE”) announced today the successful acquisition of a significant minority stake in An Giang Plant Protection Joint Stock Company (“AGPPS”), a market leader in the agricultural sector of Vietnam.
AGPPS is the largest distributor of plant protection chemicals and the largest distributor of rice seeds in Vietnam. The company is also an emerging aggregator and processor of rice. SCPE will provide strategic input into AGPPS’s business planning and support the management in its development plans.
This is the second investment in Vietnam for SCPE, following its first investment in Golden Gate Group, announced just two weeks ago. SCPE is committed to investing in successful businesses across sectors and is actively seeking opportunities across the region. SCPE invests in companies in Asia, Africa and the Middle East, backed by best in class management teams in private equity and mezzanine structures.
Bert Kwan, Head of Southeast Asia (excluding Indonesia) at SCPE, commented: “We are extremely pleased to be an investor in one of Vietnam’s flagship enterprises. We are privileged to support AGPPS’s laudable mission of bringing to the market commercially sound products and services that bolster the profitability of the Vietnamese rice value chain, while raising the standard of living for potentially millions of farmers. We worked closely with Mr Thon and his highly capable management team over the past nine months during the due diligence process, and are confident that SCPE is well positioned to play a constructive role going forward as AGPPS’s shareholder partner.”
Huynh Van Thon, Chairman of AGPPS, said: “Standard Chartered is one of the few financial institutions that have been committed to supporting the growth of the agricultural sector in Africa, India, China and South East Asia. With their experience and the global scope of their operations, I believe SCPE will play a vital role in contributing to the growth of AGPPS’s operations in the rice, plant protection chemicals and seed segments, and other promising operations across the agricultural value chain in Vietnam as well as in the global context in the coming years. SCPE is a shareholder that fully understands and strongly supports AGPPS’s strategy in developing the agricultural value chain. We believe that SCPE will become a strategic shareholder that supports AGPPS to successfully develop an agricultural value chain, thereby contributing to the development of agriculture in Vietnam and bring more value to the farmers.”