M & A Law Prof Blog

Editor: Brian JM Quinn
Boston College Law School

Tuesday, October 27, 2009

PE in Vietnam

Yesterday, the FT carried a piece announcing that TPG would be investing $35 mln in a private Vietnamese company, Masan Group.  I'm noting this for a couple of reasons. First, I have a long-standing personal/professional interest in things that happen in Vietnam.  Second, this investment comes against the backdrop of reports earlier in the month that PE investors had turned off the spigot to new Vietnam country funds.   To be honest, that's not altogether surprising.  It's still a relatively small (85 million people!) place and investments there are hands-on projects that require more spade work than you can probably imagine.  At the same time the past few years have seen an explosion in the growth of PE interest in the country resulting in much more money chasing deals.  That said, the Masan Group is a real company that's enjoyed quite a bit of success with a strong management team. 

Third, you can be sure that this deal will be well documented.  I wouldn't be surprised if a recognizable US- or UK-based law firm did the work.  I can guarantee you though that TPG is holding its breath a bit and hoping it will all work out as it signs up.  TPG would be smart to negotiate a tight deal with an airtight offshore dispute resolution clause.  If not, remember that Masan Group is a Vietnamese company and disputes amongst the stockholders will be resolved by the Vietnamese economic courts.  Let's be charitable and just say that these courts are not quite the Chancery Court of Delaware.  



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