Singapore-based investment fund Orchid Capital Investments Pte Ltd has sold 7.1 million shares in Vietnamese consumer goods company Masan Group. The April 9 transaction also led to Orchid’s equity holding in Masan Group falling to 9.19 per cent.
The Singapore fund attributed its partial divestment to “changing investment portfolio”.
Transactions on Masan Group’s stock, a blue chip on the Ho Chi Minh City Stock Exchange coded as MSN, had a significant impact on the local stock market on April 9, as a great number of 7.5 million of its shares changed hands at the price of VND73,500 ($3.4). This translated into a total negotiated value of VND522 billion ($24.3 million). The benchmark VN-Index on the same day added 0.51 per cent to 550.5 points, while MSN edged up 0.7 per cent to reach VND75,000 per share.
Previously on April 6, another batch of 6.5 million MSN shares was traded at VND74,500. The stock was trading at VND81,500 at 3:00 UTC on Thursday.
Masan Group has always attracted interest from funds. As a top five stock in terms of market capitalisation ($4.5 billion, equivalent to a six per cent capitalisation rate), several foreign investors have invested in Masan Group. In addition to Orchid Capital Investment, other investors include New York Stock Exchange-listed Kohlberg Kravis Robert and Co. LP (KKR), Dragon Capital and its units Amersham Industries Ltd, Vietnam Resources Investments Cayman and Vietnam Enterprise Investments; BI Private Equity New Market II K/S, a fund managed by Danish asset management firm BankInvest, and Favor Sea Holdings, a subsidiary of China XD Plastics Company.
Also read: Masan Group restructures consumer biz
Private equity firm KKR had doubled its investment in Masan Consumer, the food processing arm of Masan Group, by $200 million to increase its stake to 18 per cent, in January 2013. The deal marked the largest private equity agreement in Vietnam by that time and so far retains the record. Both KKR and Masan Group have opened offices in Singapore.
Six month later, another US-based investment fund, TPG Growth, acquired 49 per cent in Masan Agriculture subsidiary for $50 million. This investment followed TPG Growth’s initial investment in Masan Group in 2009 and was the fund’s third investment in Vietnam.