Masan Group Corporation (MSN) announced Tuesday that it has completed the US$250 million equity investment raising from Bain Capital, a world-leading private investment firm with around $180 million of assets under management.

 

With the exchange rate at VNĐ25,356 buying a dollar, Masan will receive VNĐ6.228 billion in net cash from this investment which will significantly improve the group's balance sheet. It will continue to actively seek alternative solutions to reduce leverage and interest expenses.

 

According to the information published on Masan’s website, the transaction is an equity investment in the form of mandatory Convertible Dividend Preference Share (“CDPS”) to be issued at a price of VNĐ85,000 per share which can be converted into common shares at a 1:1 conversion ratio.

 

The CDPS pays no dividend for the first five years, followed by a 10 per cent dividend of the par value of each outstanding CDPS per annum from the sixth year onwards. On the tenth anniversary of the issuance, the CDPS will be mandatorily converted into common shares at Masan Group.

 

The US$250 million investment from Bain Capital will bolster Masan's financial reserves, enhancing its liquidity profile to meet all financial obligations and providing greater flexibility for strategic initiatives.

 

The investment aligns with Masan's strategy to strengthen its financial position, enabling the company to better capitalise on growth opportunities in serving the needs of 100 million Vietnamese consumers, including daily grocery, financial and other basic needs.

 

Masan’s consumer businesses grew its operating profit by 40 per cent year-on-year in 2023 on robust topline expansion and margin enhancement within the FMCG segment, alongside the resilient profitability of its modern retail business.

 

Masan anticipates a recovery in the Vietnamese consumer market in 2024, with its consumer businesses poised to sustain their profitable growth trajectory.

 

During the past two years, Masan has successfully raised $1.5 billion in the global capital market.

 

The company successfully hedged the risk of long-term debt in US dollar with reasonable terms in the last quarter of 2023. Accordingly, the $950 million loan was converted to Vietnamese đồng at the exchange rate of VNDD23,937 buying a dollar and a fixed interest rate of 8.93 per cent per year. — VNS