Vietnam’s Masan Resources to list on the stock exchange

Vietnam’s leading consumer goods-focused firm Masan Group, has said that its subsidiary, Masan Resources, will list shares within this year.

The listing is aimed to “provide greater strategic flexibility and the right shareholder base for long-term growth”, Masan Group said in a statement.

Masan Resources owns the Nui Phao mine, which produces approximately 20 per cent of the global tungsten, excluding China. The mine has been exploiting high quality products across four minerals, including tungsten, fluorspar, bismuth and copper, and has sold them to customers across North America, Europe and Asia. The value-added products of tungsten are being sold through a joint venture established with Germany-based metal processor HC Starck GmbH to a marquee customer base. Production rates are expected to ramp up over the course of this year.

In 2011, US-based private equity group Mount Kellett Capital Management LP invested $100 million for a 20 per cent stake in Masan Resources. At that time, Masan Group owned 64 per cent, while another foreign shareholder, Tiberon Minerals Pte Ltd, held 16 per cent in the mineral subsidiary. Masan Group had revealed that it had a call option to buy Tiberon’s stake within the following three years for approximately $60-90 million.

“We have invested on the expectation that Masan Resources will ultimately become the leading resources platform in Vietnam and Indochina as a whole,” said Jason Maynard, co-founder of Mount Kellett.

After obtaining 100 per cent beneficial ownership over the Nui Phao mine, Madhur Maini, the then CEO of Masan Group, had added: “We have two very successful verticals, consumer and financial services, and we continue to execute on our strategy to build Masan Resources into a leading private sector resource company in Vietnam.”

Latest update on Masan Resources’ website shows that Mount Kellett still holds 20 per cent equity in the company.

Meanwhile, the parent group had earlier committed $25 million towards the development of the Nui Phao project.

In 2011 and 2012, Masan Group negotiated debt facilities worth a total of $290 million from the Vietnam Development Bank, a syndicate of local commercial banks led by Vietcombank, and Standard Chartered Bank.

By the end of 2015, Masan Resources targets to become a $2 billion company, and to achieve growth through merger and acquisition (M&A) in the short term and mineral exploration for the medium and long term.

Masan Resources’ sales and pro-forma EBITDA (earnings before interest, taxes, depreciation and amortisation) in the first quarter stood at VND813 billion ($37.8 million) and VND342 billion, respectively. Masan Group is holding a 74.3 per cent equity in the company.

Also Read:

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Singapore fund reduces holdings in Vietnam’s Masan Group

Vietnam’s Masan buys stake in two competitors

 

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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.