Confident in Masan Group's potential, Bain Capital leads capital injection transaction worth up to $500 million

ANTD.VN - On October 2, 2023 in Ho Chi Minh City, Masan Group Corporation (HOSE: MSN, “Masan” or “Company”) announced that Bain Capital – the world’s leading private equity fund with approximately 180 billion USD in total assets under management has agreed to invest at least 200 million USD in equity capital in Masan Group with a value of 85,000 VND per share (Transaction). The proceeds from this Transaction will be used to enhance the financial position and optimize Masan’s balance sheet. This transaction marks Bain Capital’s first investment project in Vietnam. At the same time, it demonstrates this 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 from basic daily life needs to financial products and services.

Regarding this Transaction, Mr. Danny Le, CEO of Masan Group said: “In the context of the challenging consumer market, Masan has continuously invested in its existing platform and continuously implemented breakthrough innovations to be ready when the consumer market recovers. We aim to become a factor that brings many times more profit in the “golden time” of the consumer story in Vietnam. The cooperation transaction with Bain Capital is a recognition of our efforts over the past time. Masan has continuously implemented initiatives and invested with consumer focus to achieve 80% of consumer spending market share. We look forward to cooperating with Bain Capital to promote this vision, becoming a platform that meets the daily needs of consumers.”

“We are delighted to partner with Masan on this strategic investment in Vietnam,” said Barnaby Lyons, a partner at Bain Capital. “We believe Masan has the right foundations, vision and growth strategy to succeed in an attractive and high-growth consumer market. Masan is one of the most trusted brands in Vietnam, with the ability to anticipate consumer trends and meet these needs through its system platform and innovative products. We see this as a promising investment opportunity given Masan’s continued growth, led by its top leaders.”

Gian hàng CHIN-SU tại sự kiện hội chợ xuất khẩu TP.HCM ảnh 1

CHIN-SU booth at the Ho Chi Minh City export fair event

From 2022 to 2040, Vietnam is expected to be the fastest growing consumer market in Southeast Asia with an expected annual growth rate of 7.7%. This impressive growth rate is due to the increasingly rapid urbanization process, the explosion of the consumer class with increasingly higher incomes, more diverse needs, beyond basic needs, towards lifestyle and financial experiences. With a leading position in the Vietnamese consumer market, Masan has been transforming from a branded consumer goods manufacturer into a Group owning a retail consumer platform, aiming for potential growth throughout the consumer value chain. Specifically, Masan clearly identifies 3 sustainable growth trends in the future:

- Premiumizing products with innovations, innovations, and focusing on consumer health in the fast-moving consumer goods sector of Masan Consumer Holdings.

- The shift from unbranded products to branded meat products with higher quality, provided by Masan MEATLife.

- The shift from traditional retail to modern retail, accelerated by the WinCommerce retail platform.

- WIN Membership Program, Masan's central platform to bridge brands and consumers, has reached 7 million members and aims to increase this number to 10 million by the end of this year, 30 million by 2025. WIN Membership Program is the platform that helps Masan serve Vietnamese consumers better with personalized products and services, and plays an important role as a growth driver in the company's business operations.

Người tiêu dùng mua thịt mát MEATdeli ảnh 2

Consumers buy MEATdeli chilled meat

Masan expects the Transaction to close in 2023 and will continue to seek other strategic equity solutions, including reducing exposure to non-core businesses, enhancing liquidity and achieving a sustainable Net Debt to EBITDA ratio below 3.5x on a long-term basis.

Masan Consumer tham gia hội chợ xuất khẩu TPHCM ảnh 3

Masan Consumer participates in Ho Chi Minh City export fair

Bain Capital has extensive experience investing to support the growth and management of a variety of consumer retail groups in Asia, including investments in Schwan Company and Carver Korea.

Jefferies Singapore Limited acted as financial advisor to Masan Group in this Transaction.

The transaction is subject to appropriate approvals under the company's charter and applicable laws.

Transaction Details:

- This transaction is an equity investment in the form of Convertible Dividend Preference Shares (“CDPS”) issued at VND 85,000/share and convertible into common shares at a ratio of 1:1.

- The fixed dividend rate of each CDPS is 0% for the first 5 years from the date of issue.

- From the 6th year onwards, the fixed dividend rate of each CDPS is up to 10%/year. Authorize the Board of Directors to decide the specific fixed dividend rate and payment time.

- In addition to the fixed dividend, each CDPS will receive a dividend equal to the dividend per common share (if any).

- In the 10th year from the date of issuance, outstanding CDPS will be required to convert into common shares of Masan Group.

- Other investors are looking to negotiate with Masan, and depending on the Company's capital needs and market conditions, Masan may increase its investment up to 500 million USD.

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