Economy
Nghệ An approves US$590 million fabric factory investment from Singapore
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| Products of Vinacafé, an affiliate of Masan Consumer. SK Group invests approximately $470 million to become Masan Group’s largest strategic shareholder. — Photo Courtesy of Masan |
Viet Nam News
HCM CITY — Masan Group Corporation has announced the completion of SK Group’s purchase of 109.89 million of its treasury shares at VNĐ100,000 (US$4.28) per share for a total consideration of $470 million.
The South Korean company is now the largest foreign shareholder in Masan Group with a 9.5 per cent stake.
The two had signed a strategic agreement last month to jointly pursue transformational business opportunities in Việt Nam and to synergise existing business units.
Masan has said it plans to utilise the money to fund future growth initiatives and strengthen its balance sheet.
Masan will add up to $50 million in net earnings per annum from next year while gross debt to EBITDA is expected to decrease to 2.5 times this year.
Its management expects core net profit after tax to jump by at least 50 per cent in 2018 and forecasts similar earnings growth momentum in fiscal year 2019 as all its core businesses continue to achieve growth plans.
The company does not intend to issue additional shares in the next three years.
Masan Group’s member companies and associates are industry leaders in branded food and beverages, consumer agriculture (meat), value-added chemical processing, and financial services, representing segments of the economy that are experiencing the most transformational growth.
SK Group is one of the largest conglomerates in South Korea, with businesses across energy, chemicals, telecommunications, semiconductors, logistics, and services.
It operates in over 40 countries and had revenues of $141 billion last year. — VNS
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