Masan Group restructures consumer biz

Masan Group Corporation (MSN), one of the largest private businesses in Vietnam, has been in the process of restructuring its consumer business, for the past few months.

Recent group initiatives to strengthen Masan Consumer Holdings (MCH)  and position it as a strategic driver of future growth have included: selling stake of Masan Brewery to MCH, raising capital for MCH through the sales of non-strategic assets, and specialising operations of the its subsidiaries.

After restructuring, Masan gorup’s consumer arm Masan Consumer Holdings (MCH) will operate two focused companies –  Masan Consumer that will be specializing in food, non-alcoholic drink ; and Masan Brewery that will produce beer.

Since December 29, 2014, MCH is the sole and direct owner of the beer producer Masan Brewery, which was directly controlled by the mother group. It is currently producing the popular “Su tu trang” (White Tiger) beer brand.

With this , MCH “will have another major vertical for growth, as beer is a $ 4 billion consumer category in Vietnam,” the group said.

Besides, aiming at raising capital for MCH’s operations, the company’s board also made public, the sale of its 51 per cent in Masan Agriculture, which holds 40 per cent stake in Vietnamese-French cattle feed firm Proconco (the largest manufacturer of cattle feed in the country).

“The cash is expected to provide the group with more resources and flexibility to support MCH’s growth and invest in transformational opportunities,” according to Masan Group’s press release.

However, the sale’s value and name of potential buyers has not been disclosed.

Also notable, is Masan Group’s divestment from the HCM City-based Minh Viet Packaging Company (Mivipack), which produces packaging material for the corporation. This move is expected to free the funds that will be used to set up new packaging factories, in areas with high product sales; reducing operation and transportation cost for the company.

Early December 2014, MCH completed a landmark 10-year bond issuance, which raised $2,100 million at an 8 per cent fixed coupon rate. The bonds are the longest tenure and lowest cost issuance by a private sector company in Vietnam, guaranteed by the Credit Guarantee and Investment Facility (CGIF), a trust fund of the Asian Development Bank. This is  CGIF’s first such certification for a Vietnam-based company.

Finally, MCH’s subsidiary, the Masan Consumer, announced the establishment of the Masan Beverage to “consolidate its non-alcoholic beverage businesses and to better position it in the bottled beverage,” informed the press release.

According to Masan Group’s report finalised last November, the revenue during the first nine months of 2014 hit a high of $508.5 million, an increase of 44.3 per cent year-on-year.

Singapore Reporter/s

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

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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.