Masan Group buys $64mln stake in Vissan

By Dam Tuan, Thi HaMarch 24, 2016 | 03:47 am PT
Masan Group buys $64mln stake in Vissan
Masan Group subsidiary Agro Nutrition Company (Anco) offered VND126,000/ share ($5.66) and bought 11.3 million shares worth $64 million to become a strategic investor in state-owned food processor Vissan at the IPO on March 24.

Vietnam Meat Industries Limited Company (Vissan) held its initial public offering on the Ho Chi Minh Stock Exchange, where Anco submitted the highest bid of VND126,000, while Vietnam French Cattle Feed JSC Proconco (also under Masan’s umbrella) bid VND125,000.


Anco acquired 14 percent of Vissan and has become a strategic investor. Photo: Vissan website.

Seoul-based CJ CheilJedang Corporation offered VND120,600.

Vissan's charter capital jumped to VND1.42 trillion ($64 million) following the auction, with private investors snapping up VND 906.8 billion ($40.7 million) worth of shares at an average price of VND80,000 - six times higher than the opening price of VND17,000.

The state holding in the food firm stands at 65 percent, while Anco now holds a 14 percent stake.

Vissan is one of the country's leading food manufacturers, specializing in processing and trading fresh meat, processed foods and related meat products.

Vissan is a member company of the Saigon Trading Group (SATRA), which is a recognized 45-year-old brand with 130,000 sales outlets nationwide, and more than 1,000 supermarkets and convenience stores.

The food giant turned over VND4.5 trillion ($202 million) in 2015 with a profit of VND150 billion, marking annual growth of 10.2 percent.

Anco is a cattlefeed enterprise established in 2001 with two Vietnamese stakeholders. In 2013, three Malaysian parties bought up a 61 percent stake. The acqiusition will fit in with Vissan's “farm to dining table” strategy.

Le Tung, chairman of Saigon Trading Group, said that the strategic investor is expected to strengthen the Vissan brand and stay committed to the company over the next five years.

Anco and Vissan’s other investors plan to build a slaughterhouse covering 10,000ha in Long An province worth USD80 million.

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