MSN acquisitions a step closer to ambitions

July 01, 2016 | 16:22

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Masan Nutri-Science, a subsidiary of Masan Group, announced yesterday that it had acquired the remaining 30 per cent of animal feed subsidiary Agro Nutrition Company JSC (Anco), and at the same time increased its ownership in the country’s leading meat processor VISSAN to 24.9 per cent from the previous 14.0 per cent.

These moves are consistent with Masan Nutri-Science (MSN)’s strategy to expand and deepen its presence in the meat value chain.

The Anco acquisition was made by a share swap, following which MSN's effective ownership in itself decreased from 100 to 86 per cent.

For VISSAN, MSN announced spending an average VND106,000 ($4.82) to buy each share of the market-leading meat player, 32 per cent higher than the IPO price of VND80,053 ($3.64).

According to Viet Capital Securities Company, MSN is estimated to have spent roughly VND2.2 trillion ($100 million) to acquire the entire 24.9 per cent stake. MSN is willing to pay such a high premium because a partnership with VISSAN is important to get closer to realising MSN’s feed-farm-food value chain ambitions.

In March this year, MSN (via its subsidiary Anco) beat South Korean conglomerate CJ to become VISSAN’s strategic investor, and acquired 14 per cent in the prized state-controlled company.

Anco bought 11.3 million VISSAN shares for more than $63.1 million, or VND126,000 ($5.75) apiece, one-upping CJ's bidding price of VND120,600 ($5.48) per share.

Despite failing to become a strategic partner of VISSAN, CJ already acquired a 4.18 per cent stake in the company at its initial public offering.

By By Thanh Xuan

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