A large number of customers shop at WinMart supermarket during a weekend. — Photo courtesy of Masan

Masan Group Corporation (HOSE: MSN) announced on April 1 that the State Securities Commission has acknowledged receipt of its application for the private placement of convertible dividend preference shares related to a US$250-million investment by Bain Capital, a leading global private investment firm with assets worth US$180 billion under management.

The acknowledgement is the requisite regulatory approval for the closing of the transaction, which has been confirmed in writing by both Masan and Bain, to occur on April 22.

The transaction terms remain the same as in the initial agreement signed in October 2023.

The transaction will be an equity investment in the form of mandatory convertible dividend preference shares (CDPS) to be issued at a price of VNĐ85,000 per share, which can be converted into common shares at a 1:1 ratio.

The CDPS pays no dividends for the first five years, but carries a 10 per cent rate on the par value of the CDPS from the sixth year onwards.

On the 10th anniversary of the issuance, the CDPS will be mandatorily converted into common shares of Masan Group.

The US$250 million investment by Bain Capital will strengthen Masan's financial reserves, enabling it to meet all financial obligations and providing greater flexibility for strategic initiatives.

It aligns with Masan's strategy to strengthen its financial position, enabling it to better capitalize on growth opportunities in serving the needs of 100 million Vietnamese consumers, including daily grocery, financial and other basic requirements.

Bain’s investment reflects its strong commitment to Việt Nam’s market in general and Masan’s consumer-focused strategy in particular.

Notably, Masan’s consumer businesses demonstrated exceptional performance in 2023, growing its operating profits by 40 per cent.

This growth was propelled by robust topline expansion and margin enhancement in the FMCG segment and the resilient profitability of its modern retail business.

Looking ahead to 2024 the company expects a recovery in the Vietnamese consumer market, with its consumer businesses poised to sustain their profitable growth trajectory.

Leveraging a more favourable business environment and heightened activity in the capital markets, Masan remains proactive in exploring alternative sources of capital with better terms.

Jefferies Singapore Limited and UBS AG Singapore Branch acted as the financial advisors for the Bains deal.

The transaction is subject to customary corporate and regulatory approvals. — VNS