Singapore fund reduces holdings in Vietnam’s Masan Group

Visual from Masan Group's website

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.

Related stories:

Vietnam’s Masan buys stake in two competitors

Masan Consumer transfers VCF stake to subsidiary

Pan Pacific has a mission to invest in agriculture: Nguyen Duy Hung

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.