VTC Online logs on to cash injection

09:11 | 17/08/2012
A Vietnamese media firm was landed $10 million investment from investment fund DWS Vietnam.

On August 14, VTC Online Communications said the firm had just benefited from $10 million investment from DWS Vietnam Fund - an investment fund in Singapore under the Deutsche Bank (Germany) - via Singapore-based fund management company Duxton Asset Management after more than a half a year’s negotiations.

VTC Online chairman Phan Sao Nam said at this time the $10 million cash was already transferred into VTC Online account and in getting this investment VTC Online needed to reach certain growth targets such as posting VND500 billion ($23.8 million) total profits by 2014.

“This figure is ambitious, but with VTC Online’s rapid smooth growth in the past year we believe our company will complete the commitment with the investor,” said Nam.

In 2011 VTC Online eyed 69 per cent hike in profits against 2010, while its profits in 2012’s first half was 1.5 times against 2011’s full year profits.

In respect to what VTC Online will do with this $10 million capital injection, Nam said the company would focus on education, entertainment and communications.

Particularly, the amount will be pumped into development of Vietnam Network (go.vn);
production of games on all platforms, issuance of domestic and international games,
development of communication products and services, television and
development of online and offline education, according to contract terms.

“After a period of expansionary development, now our company restructures operations highlighting in-depth development,” said Nam.

The company has set revenue target of VND2 trillion ($95.2 million) this year (down 50 per cent against last year), but managed to reap profits quadruple that in 2011.

Duxton’s decision to put its capital into VTC Online was reportedly rooted on appraising the latter’s management expertise, its development strategy, control system and future growth potential.

This is the second fund invested in VTC Online, the first one is IDG Ventures Vietnam (IDG). With the participation of DWS Vietnam Fund, the percentage of shares held by the VTC Online institutional investors has exceeded 60 per cent.

Its three major shareholders are VTC Multimedia Corporation, DWS Vietnam Fund and IDG Ventures Vietnam.

VTC Online’s Management Board has set the target of hosting its initial public offering (IPO) and listing on one of five well-known stock exchanges, including NASDAQ (US), HKEC (Hong Kong), SGX (Singapore), Kosdaq (South Korea) or HoSE (Vietnam) by 2015.

By Huyen Anh

vir.com.vn

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