Products of Vinacafé, an affiliate of Masan Consumer. SK Group invests approximately 470 million USD to become Masan Group’s largest strategic shareholder.(Photo courtesy of Masan)
HCM City (VNS/VNA) - Masan Group Corporation hasannounced the completion of SK Group’s purchase of 109.89 million of itstreasury shares at 100,000 VND (4.28 USD) per share for a total considerationof 470 million USD.
The Republic of Korean company is now the largest foreignshareholder in Masan Group with a 9.5 percent stake.
The two had signed a strategic agreement last month tojointly pursue transformational business opportunities in Vietnam and tosynergise existing business units.
Masan has said it plans to utilise the money to fund futuregrowth initiatives and strengthen its balance sheet.
Masan will add up to 50 million USD in net earnings per annumfrom next year while gross debt to EBITDA is expected to decrease to 2.5 timesthis year.
Its management expects core net profit after tax to jump byat least 50 percent in 2018 and forecasts similar earnings growth momentum infiscal year 2019 as all its core businesses continue to achieve growth plans.
The company does not intend to issue additional shares in thenext three years.
Masan Group’s member companies and associates are industryleaders in branded food and beverages, consumer agriculture (meat), value-addedchemical processing, and financial services, representing segments of theeconomy that are experiencing the most transformational growth.
SK Group is one of the largest conglomerates in the Republicof Korea, with businesses across energy, chemicals, telecommunications,semiconductors, logistics, and services.
It operates in over 40 countries and had revenues of 141billion USD last year.-VNS/VNA
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