Global fund buys 10 per cent of Masan Group

April 11, 2011 | 08:00

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Global investment firm Kohlberg Kravis Roberts&Co LP will acquire a 10 per cent stake in a subsidiary of the HCM City-listed Masan Group, following a bilateral agreement inked on April 12.

The investment company will pay $159 million for the stake in Masan Consumer, in what will be the largest ever private equity transaction in Vietnam . It is also the first venture by Kohlberg Co into the Vietnamese market.

Under the deal, Masan Consumer will issue 14 million shares to Kohlberg, reducing Masan Group’s stake from 86.6 per cent to 78 per cent.

Masan Group CEO Madhur Maini said that the partnership with Kohlberg will help the company achieve more growth in the food industry.

Ming Lu, a representative of Kohlberg, said that the acquisition showed how the company regarded Vietnam ’s business prospects.

Masan Consumer produces popular fish, soya and chilli sauces, and instant noodles. The company last year earned a revenue of VND5.7 trillion ($272 million) and a net profit of VND1.3 trillion ($60 million).
Kohlberg Kravis Roberts & Co is an alternative asset manager with $61 billion in assets under management as of December 31, 2010.

The company seeks to create value by bringing operational expertise to its portfolio of companies and through active oversight and monitoring of its investments.