Masan completes $250 million investment deal with Bain Capital
By Dung Pham
April 01, 2024 | 03:03 PM GMT+7
The consumer goods group has successfully finalized the acquisition of a $250 million investment from Bain Capital, a prominent global private investment firm.
Masan has revamped its Winmart retail chain. Photo at the courtesy of Winmart
The State Securities Commission has confirmed receipt of comprehensive documentation pertaining to the issuance of preferred dividend convertible shares by Masan, marking the culmination of the transaction process.
This strategic investment, originating from Bain Capital, a key player in the global private investment arena managing assets worth approximately $180 billion, underscores Masan's commitment to fortify its financial footing.
The infusion of $250 million is anticipated to significantly bolster Masan's liquidity, empowering the conglomerate to meet its financial obligations while fostering agility in executing strategic initiatives.
Both Bain Capital and Masan have formally acknowledged April 22 this year as the official completion date for the transaction, affirming the adherence to the original terms agreed upon in October 2023.
The influx of capital from Bain Capital is poised to turbocharge Masan's consumer business segment, which demonstrated robust performance in 2023 with a staggering 40 per cent surge in operating profits compared to the previous year.
This growth trajectory is attributed to expansive revenue streams and enhanced profit margins in the fast-moving consumer goods segment, coupled with a resilient performance in the modern retail sector.
Masan anticipates a resurgence in its consumer business segment, buoyed by the gradual recovery of the Vietnamese consumer market this year.
Capitalizing on a conducive business environment and intensified activities in the capital market, Masan is poised to pursue alternative funding avenues with a keen eye on optimizing terms.
The investment structure, comprising convertible dividend preference shares (CDPS) priced at VND85,000 per share and convertible at a 1:1 ratio, underscores Masan's commitment to preserving the interests of its existing shareholders.
With a fixed dividend rate of zero per cent for the initial five years, escalating to 10 per cent annually thereafter, the CDPS mechanism aims to provide stability and attractive returns for investors.
In essence, Masan's collaboration with Bain Capital heralds a new chapter in its growth trajectory, positioning the conglomerate to capitalize on burgeoning opportunities and cater to the evolving needs of Vietnam's 100 million consumers across essential commodities, financial services and daily essentials.
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