Masan buys back WinCommerce stake from South Korea’s SK Group

SK Group will also sell back to Masan at cost the remaining 9.2% of the stake in WinCommerce, according to an agreement the two sides announced on Wednesday.

It bought the 16.3% stake in WinCommerce for $410 million in 2021.

Masan said increasing its stake in WinCommerce would strengthen its control over the subsidiary and drive long-term growth.

WinCommerce is the owner of WinMart, the largest modern retail chain selling food and consumer goods in Vietnam with over 130 supermarkets and more than 3,600 WinMart+ stores.

In June and July the firm earned profits for the first time in nearly 10 years of operation on rising revenues and the adoption of distinct new store models to serve urban and rural consumers.

Danny Le, CEO of Masan, said WinCommerce has turned profitable and profits are expected to grow at an accelerated rate.

After buying back the stake, Masan’s net debt to earnings ratio is expected to decrease to below 3.5.

SK Group, a shareholder of Masan, is selling its stake in WinCommerce as part of its plan to restructure its portfolio.

It is optimistic about Masan's growth potential and profitability and the long-term growth of Vietnam’s consumer market.

The company aims to raise around 1 trillion won (US$720 million) by selling off non-core businesses.

Investors have been speculating since last year that the firm might divest from Masan and pull out Vietnam, resulting in a sharp decline in Masan stock prices.

SK Group has denied the speculation and told the South Korean media that it is discussing long-term business cooperation with the government and major companies in Vietnam, and plans to make the country its "business hub in Southeast Asia."