Masan completes buyback of over 100 million shares

Masan's animal feed facility

During the buyback period, Masan purchased over 100,660,000 shares, increasing its total treasury shares to nearly more than 109,900,000 or 9.5 per cent of its charter capital.

Masan paid a weighted average price of VND58,352 ($2.6) per share for a total consideration of VND5,874 billion ($267 million).

According to the group's release, the completed buyback will deliver strong shareholder returns. That is because Masan Consumer’s growth is back due to operational transformation to focus on innovation and building power brands rather than heavy investment in trade.

As a result, stock level has been normalised to 2010 and 2011 levels with double digit growth expected in 2018’s first quarter. The third quarter of 2017 results demonstrate a recovery in its major categories and strong performance in big growth pillars such as beer, energy drinks and processed meat.

Masan Nutri-Science has lowered the company’s overall consolidated financial results in 2017 as Vietnam experienced historically low livestock pig prices.

Livestock pig prices will start to recover as consumer demand for pork picks up during the Tet holidays. The company believes it will start to realise results from growing pig feed market share from 30 per cent to nearly 50 per cent in 2018.

In addition, management will continue to focus on building an integrated branded meat platform, which will enable the company to deliver strong top and bottom-line growth through livestock cycles.

The outperformance at Techcombank and Masan Resources which has witnessed a 50 per cent plus recovery in tungsten prices will continue in the medium term and is not being properly reflected in Masan’s valuation.

The successful IPOs of consumer-centric businesses (VietJet, VP Bank, and Vincom Retail) and the more recent investment in Vinamilk by Jardine Matheson show that investors today believe in Vietnam’s consumer growth story, particularly in sector leaders that can demonstrate market consolidation and a large consumer base.

As a leader across the largest consumer segments and a strong 2018-2020 growth trajectory outlook, Masan believes it will deliver strong returns for shareholders. Masan believes the share buyback provides flexibility for growth capital while minimising dilution to existing shareholders.

Masan has built leading businesses in the branded food and beverage sector and in the animal nutrition value chain.

Masan’s businesses include Masan Consumer Holdings, the producer of some of Vietnam’s most trusted and loved brands across many food and beverage categories (such as Chin-su, Nam Ngu, Tam Thai Tu, Omachi, Kokomi, Vinacafe, Wake-up, Vinh Hao and Su Tu Trang), and Masan Nutri-Science, Vietnam’s largest local animal protein company (with brands such as Bio-zeem, Proconco and ANCO).

The group’s other businesses include Masan Resources, one of the world’s largest producers of tungsten chemicals and strategic industrial minerals, and Techcombank, a leading joint stock commercial bank in Vietnam.

Prolonged pig crisis overshadows Masan’s growth fundamentals Masan Group, one of Vietnam’s largest private sector companies with a focus on the consumption and resources sectors, has just released its financial statements for the first nine months of 2017.

Masan to buy back up to 10 per cent of common stock Masan’s buyback of its common stock is seen as one of the group’s attempts to respond to the expectations of shareholders.

Masan Nutri-Science delivers 3F promise At first glance, the Vietnamese animal protein industry appears to have reached its full potential with a total market size of $18 billion, equivalent to over 9 per cent of the national GDP. The entire value chain includes animal feed, farming, and end-consumer products, both fresh and processed meat.

Masan's history of unique M&A While M&A may be a new and strange activity to Vietnamese businesses, to Masan, it is simply a tool to be used for developing their long-term vision.

KKR closes $250 million investment in Masan Group Masan Group Corporation (HOSE: MSN), announced on April 21 that leading global investment firm KKR has completed its $250-million investment in Masan Group and in its branded meat platform Masan Nutri-Science.