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 Tuesday.
HCM CITY —
The investment company will pay US$159 million for the stake in Masan Consumer, in what will be the largest ever private equity transaction in Viet Nam. 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 would help the company achieve more growth in the food industry.
"We view the next two years as transitional for the group while we continue to look at strategic M&A."
Ming Lu, a representative of Kohlberg, said that the acquisition showed how the company regarded Viet Nam's business prospects.
Goldman Sachs acted as consultant to Masan Group for the transaction.
Masan Consumer produces popular fish, soya and chilli sauces, and instant noodles. The company last year earned a revenue of VND5.7 trillion (US$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. — VNS