KKR, one of the world’s most famous and prestigious private equity firms, last week announced a $200 million investment into Masan Consumer to deepen its partnership with Masan Group in Vietnam.
Adding the $159 million investment in April 2011, this move means KKR will more than double its investment in Masan Consumer, making its biggest investment in South East Asia.
This is also the largest private equity deal in Vietnam and it added to the group’s record of raising more than $1 billion during the past few years in the country.
KKR will make the new investment by increasing its equity stake through a combination of primary and secondary shares, but did not disclose what stake it now holds in Masan Consumer following its second acquisition.
Ming Lu, KKR’s regional head of South East Asia, said: “Doubling our investment in less than two years demonstrates our strong conviction in Vietnam’s growth story, Masan Group as our partner of choice in Vietnam and Masan Consumer as a leading Vietnam consumption platform.”
As Masan Consumer broadens and deepens its consumption strategy, it will leverage KKR’s global retail and consumer experience and work hand-in-hand with KKR Capstone, a team of operating executives who work exclusively with KKR’s portfolio companies, on instilling world-class business management processes.
Madhur Maini, CEO of Masan Group, said: “Our core belief as a group is the structural consumption growth and rising middle class potential of Vietnam. We believe KKR is the right partner to broaden and deepen our consumption platform to capture this opportunity.”
Masan is one of the largest publicly-listed private sector groups in Vietnam focusing on the country’s consumption and resources sectors. Masan Consumer is currently a market leader in sauces, instant noodles and instant coffee categories.
Masan Consumer CEO Truong Cong Thang said: “Our partnership with KKR strengthens our strategy to diversify into other fast moving consumer goods categories in the near future, to better meet the needs of consumers in Vietnam.”
Masan Consumer has approved an issuance plan for ordinary shares under private placement. The estimated number of new shares to be issued is no more than 15 per cent of the company’s total outstanding ordinary shares on a fully-diluted basis immediately after the completion of the issuance.
The plan will be submitted for the approval of the company’s general meeting of shareholders and the timing of issuance is projected to be within 12 months of the passing of the shareholders’ resolution. The new shares would be issued in one or more occasions and the private placement is for less than 100 investors.
According to the board’s resolution, the company would only issue shares to investors who are reputed foreign institutions and/or strategic partners having the ability and capacity to contribute to the businesses of the company or its subsidiaries and to benefit the company on a long-term basis. The par value would be VND10,000 ($0.5) per share. The new shares would be subject to a lock-up period of one year from the date of completion of the issuance.
KKR currently has over $66 billion in assets under management. The New York-based firm set up its first office in Asia in 2005 and employs almost 100 people in the region. It opened its seventh Asian office in Singapore in October 2012 as the regional headquarters for South East Asia.
The company is also raising a $6 billion Asian fund. In addition to KKR, other large and reputable investors at Masan Group include IFC,TPG, Richard Chandler, Goldman Sachs, Dragon Capital, and Bank Invest.
Source: http://www.vir.com.vn