KKR to Acquire Stake in Masan Consumer
KKR will invest $159m for a 10 percent equity stake in Masan Consumer, valuing the company at $1.6 billion and making a private equity transaction in Vietnam. This is KKRâ€™s fourth investment in Southeast Asia and first in Vietnam.
Masan Consumer will issue 14 million ordinary shares to KKR and decrease Masan Groupâ€™s stake in Masan Consumer from 86.6 percent to 78 percent.
Masan has raised approximately $500m in private equity capital over the past two years and is currently one of the largest listed private sector groups in Vietnam. Masan Consumer is a growing FMCG company in Southeast Asia.
Masan Consumerâ€™s revenue for the year ended December 31, 2010 increased to VND5,690 billion ($272m) from VND2,004 billion ($96m) in 2008 and net profit increased to VND1,253 billion ($60m) from VND402 billion ($19m).
Masan Consumer is a producer of fish, soya and chili sauce and also produces of branded instant noodles. Goldman Sachs was advisor to Masan Group for the transaction.
Ming Lu, member of KKR, said: â€œKKR is excited to be making the largest ever private equity investment in Vietnam. This investment demonstrates our strong conviction in the business prospects of Masan Consumer, as well as in Vietnam as a whole.â€
Truong Cong Thang, CEO of Masan Consumer, said: â€œWe have built a leading consumer platform in Vietnam. We will leverage our platform to diversify into other FMCG categories in the near future.â€
Will the acquisition benefit KKR?
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