HO CHI
MINH CITY, Vietnam, Oct. 2, 2023
/PRNewswire/ -- Masan Group Corporation (HOSE: MSN,
"Masan" or the "Company") today announced that Bain Capital, a
leading private investment firm with approximately US$180 billion of assets under management, has
agreed to invest into Masan Group at
least US$200 million in equity capital at price of
VND85,000 per share (the
"Transaction"). Proceeds from the Transaction will be used to
strengthen the Company's financial position and de-lever its
balance sheet. This marks Bain Capital's first-ever investment in
Vietnam and underscores its
confidence in Masan's ability to realize the immense opportunity to
fulfill 100 million Vietnamese consumers' daily grocery, financial,
and other life needs.
Vietnam is the fastest
consumption growth market in Southeast
Asia with forecasted annual growth of 7.7% between 2022 and
2040, underpinned by increasing urbanization and an exploding
consumer class with higher disposable income and evolving demands
extending beyond basic needs to lifestyle and financial ones. A
leader in the Vietnamese consumer market, Masan has been
transforming from a pure branded products company into an
integrated consumer-retail platform to consolidate the growth
potential across the consumer value chain. In that respect, Masan
has identified 3 multi-year secular growth trends:
- Premiumization and health-led innovations, served by
its fast-moving consumer goods ("FMCG")
business, Masan Consumer Holdings;
- Transition from unbranded to branded and increasing demand for
higher-quality animal protein, provided by Masan
MEATLife; and
- Shift from general trade ("GT") to modern trade ("MT"),
accelerated by its retail platform, WinCommerce.
- At the center of Masan's platform is WIN Membership – the
platform connecting brands and consumers – which has reached 7
million members and is targeted to reach 10 million members by
year-end and 30 million members by 2025. The WIN Membership
platform allows Masan to provide more personalized, targeted
products and services to better serve the Vietnamese consumers and
will serve as the critical growth engine for the Company's
businesses.
Danny Le, CEO of Masan Group,
commented on the transaction: "In the face of a challenging
consumer environment, Masan has continued to invest in our platform
and breakthrough innovations to position ourselves for the consumer
upswing. We aim to be a profitable multiplier on Vietnam's golden consumption era. Bain
Capital's partnership is a strong validation of all the
consumer-centric investments and transformation we have made over
the past 18 months to win 80% of the consumer wallet. We look
forward to working with Bain to accelerate our vision to be the
one-stop shop for consumer daily needs."
"We are thrilled to partner with Masan for an important
investment in Vietnam and believe
that Masan has the right fundamentals, reach, and growth strategy
to succeed in a high-growth and compelling consumer market.
Masan is one of the most trusted brands in Vietnam with significant reach to households
with the ability to anticipate consumer tastes and build out an
innovative product pipeline to meet those needs. We see a
significant opportunity to invest behind Masan's continued growth
and first-class management team," said Barnaby Lyons, a Partner at Bain Capital.
Bain Capital has deep experience in investing to support the
growth and leadership of a diversified set of consumer and retail
businesses in Asia, including
Schwan's Company and Carver Korea.
Masan expects the Transaction to close by end of 2023 and
continues to explore other strategic alternatives for equity
capital, including diluting its interest in non-core businesses, to
bolster its liquidity profile and achieve a sustainable Net Debt to
EBITDA ratio below 3.5x on a steady-state basis.
Jefferies Singapore Limited acted as the financial advisor to
Masan Group. The Transaction is subject to customary corporate
and regulatory approvals.
Transaction Details
- The Transaction is an equity investment in the form of
Convertible Dividend Preference Share ("CDPS") to be issued at a
price of VND85,000 per share which
can be converted into ordinary shares at a 1:1 conversion
ratio
- In addition to the normal dividends payable (if any) to the
Company's shareholders, the CDPS has no preference dividend for the
first five years, then followed by a 10% preference dividend at par
value of each outstanding CDPS per annum from the sixth
anniversary onwards
- On the tenth anniversary of the issuance, the outstanding CDPS
will be mandatorily converted into ordinary shares of Masan
Group
- Masan is also in discussion with other investors to upsize the
investments to up to US$500 million
which is subject to prevailing market conditions and the
Company's capital needs
MASAN GROUP CORPORATION
Masan Group Corporation believes in doing well by doing good.
The Company's mission is to provide better products and services to
the 100 million people of Vietnam,
so that they can pay less for their daily essentials. Masan aims to
achieve this by driving productivity with technological
innovations, trusted brands, and focusing on fewer but bigger
opportunities that impact the most lives.
Masan Group's member companies and associates are industry
leaders in branded fast moving consumer goods, branded meat, modern
retail, F&B retail, financial services, telecommunications, and
value-add chemical processing, altogether representing segments of
Vietnam's economy that are
experiencing the most transformational growth.
BAIN CAPITAL
Bain Capital is one of the world's leading private investment
firms with approximately $180 billion
of assets under management that creates lasting impact for our
investors, teams, businesses, and the communities in which we
live.
Since our founding in 1984, we've applied our insight and
experience to organically expand into several asset classes
including private equity, credit, special situations, public
equity, venture capital and real estate. We leverage our shared
platform to capture cross-asset class opportunities in strategic
areas of focus. With offices on four continents, our global team
aligns our interests with those of our investors for lasting
impact.
Contact:
Investors/Analysts
Phu Duong
E: ir@msn.masangroup.com
This press release contains forward-looking statements regarding
Masan's expectations, intentions or strategies that may involve
risks and uncertainties. These forward-looking statements,
including Masan's expectations, involve known and unknown risks,
uncertainties, and other factors, some of which are beyond Masan's
control, which may cause Masan's actual results of operations,
financial condition, performance, or achievements to be materially
different from those expressed or implied by the forward-looking
statements. You should not rely upon forward-looking statements as
predictions, future events or promises of future performance.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/bain-capital-leads-masan-groups-equity-funding-round-of-up-to-us500-million-301944205.html
SOURCE Masan Group