Korean giant buys 9.5 pct stake in Masan for $470 mln

By Ha Van Dinh    September 19, 2018 | 11:25 pm PT
Korean giant buys 9.5 pct stake in Masan for $470 mln
Last year Masan Group reported a net profit of about $133 million. Photo by VnExpress
SK Group is set to become the largest foreign shareholder in Vietnam's Masan Group by acquiring all its treasury shares.

Masan announced Wednesday that South Korea's SK Group would pay $470 million to buy 109.9 million shares, or equivalent to VND100,000 for a share and representing a 9.5 percent stake.

The deal is expected to be completed in October.

SK Group will have the right to nominate a member to the board of one of Vietnam’s biggest consumer goods companies.

Woncheol Park, representative director of SK South East Asia Investment, called the acquisition “the first of many investments with Masan.”

“We look forward to working alongside Masan immediately to deliver on our transformational game plan.”

The Korean company operates in over 40 countries, with interests in energy, chemicals, telecommunications, semiconductors, logistics, and services.

Masan’s subsidiaries include Masan Consumer, Techcombank and Masan Resources.

Last year it reported a net profit of VND3.1 trillion ($133 million) on revenues of VND38.98 trillion ($1.67 billion).

MSN is one of the stocks in the benchmark VN30 index.

Masan plans to utilize the money paid by SK Group to fund future growth and eyes a $50 million increase in earnings as early as next year.

It has said it does not plan to issue further shares in the next three years.

Kohlberg Kravis Roberts & Co LP, a U.S.-based leading global investment firm, last year invested $250 million in Masan Group and its Masan Nutri-Science.

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