April 12, 2011
Masan Group Raises US$159 Million with 10% Sale of Masan Consumer to KKR
The Largest Ever Private Equity Transaction in Vietnam
Ho Chi Minh City, 13 April 2011 Masan Group (HOSE: MSN, "Masan"), one of Vietnam's largest private sector business groups, today announced that Kohlberg Kravis Roberts & Co. L.P. (together with its affiliates, "KKR"), a leading global investment firm with US$61.0 billion in assets under management, has signed definitive agreements to acquire an equity stake in Masan Consumer Corporation ("Masan Consumer" or the "Company", formerly known as Masan Food). KKR will invest US$159 million for a 10.0% equity stake in Masan Consumer, valuing the Company at US$1.6 billion and making the investment the largest ever private equity transaction in Vietnam. This is KKR's fourth investment in Southeast Asia and first in Vietnam. Masan Consumer will issue 14 million ordinary shares to KKR and decrease Masan Group's stake in Masan Consumer from 86.6% to 78.0%.
Masan has raised approximately US$500 million in private equity capital over the past two years and is currently the largest listed private sector group in Vietnam. Masan Consumer is the fastest growing FMCG Company in Southeast Asia.
Madhur Maini, CEO of Masan Group, commented, "We have recently taken our market leading food platform to transform it into a consumer platform and this transaction validates our consumer strategy. We welcome KKR as a partner to assist us in achieving this objective. In addition, we view the next 2 years as transformational for the group and continue to build a war chest for strategic M&A."
Truong Cong Thang, CEO of Masan Consumer, commented, "We have built a leading consumer platform in Vietnam. We will leverage our platform to diversify into other FMCG categories in the near future."
Ming Lu, Member of KKR, commented, "KKR is excited to be making the largest ever private equity investment in Vietnam. This investment demonstrates our strong conviction in the business prospects of Masan Consumer, as well as in Vietnam as a whole."
Masan Consumer is currently the market leader in fish, soya and chili sauce and the second largest producer of branded instant noodles. Masan and experience in building leading brands to achieve its vision to become the leading consumer company in Vietnam. Masan Consumer's revenue for the year ended December 31, 2010 increased to VND5,690 billion (US$272 million) from VND2,004 billion (US$96 million) in 2008 and net profit increased to VND1,253 billion (US$60 million) from VND402 billion (US$19 million).
KKR was advised by Credit Suisse, Simpson Thacher & Bartlett, and VILAF - Hong Doc.
ABOUT MASAN GROUP CORPORATION
Masan Group is one of Vietnam's largest private sector companies focused on building market-leading businesses in industries that its plans to dominate over the long-term. Masan's entrepreneurial spirit and commitment to shareholder value has enabled Masan Group to develop Masan Consumer, Techcombank and Masan Resources into sector champions in consumer staples, financial services and resources, respectively.
ABOUT MASAN CONSUMER CORPORATION
Masan Consumer is one of Vietnam's leading diversified consumer companies and currently manufactures and distributes a range of food products, including fish sauce, soya sauce, chili sauce, instant noodles and edible oils. The Company commenced operations in 2000 and has subsequently grown its product portfolio, domestic sales and distribution channels to establish a leading position in Vietnam branded food products. Masan Consumer's products have a strong reputation for their quality and taste as evidenced by their leading market share in a number of categories.
Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a leading global alternative asset manager with $61 billion in assets under management as of December 31, 2010. With over 600 people and 14 offices around the world, KKR manages assets through a variety of investment funds and accounts covering multiple asset classes. KKR seeks to create value by bringing operational expertise to its portfolio companies and through active oversight and monitoring of its investments. KKR invests in high-quality franchises across multiple industries, including current and previous consumer and retail investments such as Del Monte Foods, Oriental Brewery, VATS, Café Coffee Day, Modern Dairy, Sealy, Duracell, Gillette, RJR Nabisco and Safeway. KKR is publicly traded on the New York Stock Exchange (NYSE: KKR). For additional information, please visit KKR's website at www.kkr.com
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