Masan buys additional shares in subsidiary The CrownX

By Dat Nguyen   June 30, 2021 | 11:49 pm PT
Masan buys additional shares in subsidiary The CrownX
Customers at a Phuc Long kiosk next to a VinMart+ convenience store in Ho Chi Minh City in May 2021. Photo by VnExpress/Quynh Tran.
Conglomerate Masan Group has acquired an additional 4.7 percentage stake in its subsidiary The CrownX, bringing its ownership to 84.9 percent.

The group bought the shares from its minority shareholders. It did not reveal the value, but based on the valuation in May when the group issued new The CrownX shares to Alibaba, the deal was estimated at $340 million.

"We believe The CrownX is undervalued based on its expected 2021 financial performance and its current valuation does not price in the upside of our off-to-online platform," said Masan Group CEO Danny Le.

The CrownX targets profits from its VinCommerce unit, which operates VinMart+ minimarts and VinMart supermarkets, in the second quarter after achieving break-even in June.

It plans to open from 300 to 500 new VinMart+ stores by the end of the year, bringing its total store network to over 3,000.

It also eyes having 1,100 Phuc Long Kiosks in VinMart+ locations by year-end. Each of these kiosks is set to generate VND5 million ($217) in revenue per day, of which VinCommerce gets 20 percent.

VinCommerce has also piloted 4-hour express delivery from 14 VinMart supermarkets in Ho Chi Minh City and Hanoi.

Masan plans to raise an additional $300-400 million at The CrownX in the second half this year.

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