Vietnam: Masan Resources closes unit buyout; PAN issues $49.35m bonds

Vietnam
Vietnamese national flags and billboards advertising the 12th National Congress of the Communist Party of Vietnam line a highway in Hanoi, Vietnam. Photographer: Maika Elan/Bloomberg

Masan Resources, a unit under diversified Masan Group, has completed the buyout of Nui-Phao-H.C. Starck Tungsten Chemicals Manufacturing in a $29.1 million deal while The PAN Group has issued $49.35 million fixed rate bonds for the first time, diversifying its investor base.

Masan Resources completes buyout of German partner’s stake

Masan Resources, the mining arm of one of Vietnam’s biggest private companies Masan Group, has completed the buyout of minority joint venture partner German manufacturer H.C. Starck GmbH, according to Milbank, Tweed, Hadley & McCloy LLP, the advisor of the deal.

The value of the transaction was earlier announced at $29.1 million.

Masan Resources, through its subsidiary Nui Phao Mining, acquired H.C. Starck’s 49 per cent stake in joint venture company, Nui-Phao-H.C. Starck Tungsten Chemicals Manufacturing LLC, the world’s largest tungsten downstream processing plant.

“This acquisition allows MSR full access to innovative downstream processing technology to deliver its vision of becoming a fully integrated downstream tungsten chemicals business of global scale and influence,” Milbank said in a statement.

The duo established the 51:49 joint venture in 2013. Nui-Phao-H.C. Starck was reported to have an installed capacity of 6,500 tons tungsten trioxide per annum.

PAN Group issues $49.35m fixed rate bonds

Vietnamese tycoon Nguyen Duy Hung’s The PAN Group has issued its inaugural VND1.135 trillion ($49.35 million) fixed rate bonds, guaranteed by Credit Guarantee and Investment Facility (CGIF), a trust fund of Asian Development Bank, and placed through the local branch of Standard Chartered Bank.

The bonds are priced at an interest rate of 6.8 per cent per annum and has a 5-year maturity term.

Proceeds from this issuance will enable PAN to finance its general corporate purposes for packaged food business including acquisitions, investments in fixed assets/capital expenditure and operation expansion.

Hung built up PAN through M&A activity and led the company to become one of the top agriculture and food groups in Vietnam. PAN has achieved a revenue CAGR of nearly 80 per cent over the past 5 years, Standard Chartered Bank Vietnam said in a statement.

“The transaction is a significant milestone for the company as it enables us to diversify our funding and investor base as well as to lock-in attractive fixed interest rates for the long term,” said Nguyen Thi Tra My, CEO of PAN.

PAN’s shareholders include the International Finance Corporation, TAEL Partners and Singapore’s GIC, among others.

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