Masan Beverage, a subsidiary of Masan Consumer Holdings in the Masan Group, will buy 5.2 million shares, equal to 65 per cent of Quang Ninh Natural Mineral Water Co Ltd. — Photo enternews.vn

HA NOI (Biz Hub) — Masan Beverage has signed an agreement to become the strategic partner of Quang Ninh Natural Mineral Water Limited Company, according to a press release from Masan Group on Monday.

According to the agreement, Masan Beverage, a subsidiary of Masan Consumer Holdings in the Masan Group, will buy 5.2 million shares, equal to 65 per cent of Quang Ninh Natural Mineral Water Co Ltd.

Masan Group is a conglomerate based in HCM City with interests in food, banking and mining.

Masan Beverage will negotiate the share price with the Quang Ninh Natural Mineral Water Company based on the offering price of VND11,100 when the Quang Ninh's beverage company organises its intial public offering (IPO).

The company's IPO will be held on December 2. Masan Group also committed that it would not sell its stake within five years after the IPO.

"For Masan Group, the signing of the agreement is a testament to its long-term commitment to the beverage category and belief that mineral water represents a core part of Vietnamese consumers' desire for more natural and healthier offerings," the representative of Masan Group told Viet Nam News.

Masan Group said that the deal would help it dominate the country's mineral-water market by producing and distributing two popular brands launched by Quang Ninh Natural Mineral Water Co Ltd – which are Quang Hanh and Faith mineral water.

Quang Ninh Mineral Water Company declined to comment on this deal.

At the moment, Masan has charter capital of VND1.68 trillion (US$74.7 million) and has already acquired 64 per cent of Vinh Hao Mineral Water Company and 53 per cent of Vinacafe Bien Hoa – two of the biggest beverage firms in Viet Nam.

This year, Masan Beverage targets a combined revenue of VND1 trillion ($44.4 million), double the company's result last year.

Meanwhile, Quang Ninh Mineral Water Company Limited is a popular brand in the northern market with Quang Hanh brand and Suoi Mo brand, producing salty mineral water and low-mineral water.

The northern-based mineral water producer has charter capital of VND80 billion ($3.55 million) and is expected to earn VND370 billion ($16.4 million), four times the figure in 2010.

After the IPO, the Quang Ninh Province Mineral Water Company will hold 10 per cent of the company while employees hold 20 per cent, the labour union holds 3 per cent and other investors hold 2 per cent. — VNS