US investment fund plans to invest 250 million USD in Masan in April

Masan said Bain Capital, a US private equity fund that manages about $180 billion, will complete a $250 million investment in the company on April 22.

According to Masan Group (MSN), the terms remain the same as the agreement in October 2023.

This is an equity investment in the form of convertible dividend preference shares, issued at VND85,000 and will be converted into common shares at a ratio of 1:1. The fixed dividend rate is 0% for the first 5 years. From the 6th year, the fixed dividend rate is 10% per year. In the 10th year from the date of issuance, these preference shares will be compulsorily converted into common shares.

"This is an equity investment transaction, without a hedging structure or stock borrowing that results in the sale of MSN shares to the market on the issuance date. The structure of the investment is designed to ensure the interests of existing shareholders," the company's board of directors emphasized.

Masan said the State Securities Commission has received a complete dossier for the private placement of convertible dividend preference shares from the company. This is the final step required by regulations for the two parties to complete the deal.

Founded in 1984, Bain Capital has a long history of investing in the growth and management of consumer retail groups in Asia, including investments in Schwan and Carver Korea. According to Masan, the transaction demonstrates the investor’s confidence in the growth story of the consumer market in Vietnam, as well as Masan’s ability to realize the opportunity to serve 100 million domestic consumers.

Masan said the $250 million capital injection will strengthen its resources, increase liquidity to meet all financial obligations, and provide the company with flexibility to execute strategic initiatives. The company previously said it was focusing on reducing its exposure to non-core businesses, increasing liquidity, and achieving a sustainable net debt-to-EBITDA ratio of below 3.5 times.

This year, Masan expects its consumer business to return to its profit growth trajectory thanks to the recovery of the general market. The company targets consolidated net revenue of VND84,000-90,000 billion, up 7-15% over the same period in 2023. As for core after-tax profit before allocation to minority shareholders, it is expected to reach VND2,290-4,020 billion, up more than 17% and double compared to 2023, respectively, depending on macroeconomic conditions.

Siddhartha

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