SK Group to acquire $470mn stake in Vietnam’s Masan

Bloomberg

SK Holdings Co. is acquiring the largest foreign stake in Masan Group Corp. for about $470 million, in a deal that will value the Vietnamese diversified business group at about $5 billion.
The South Korean group, which has businesses ranging from telecommunications to service sectors, will buy Masan Group’s entire 109.9 million treasury shares for $4.29 each, the companies said in a statement. The acquisition, equal to a 9.5 percent stake in Masan Group, will make SK Group the largest foreign shareholder in the Vietnam conglomerate, whose principal businesses include food and beverages, financial services and natural resources.
The next biggest foreign holder is GIC Pte, Singapore’s sovereign wealth fund which holds a 4.99 percent stake, according to data compiled by Bloomberg.
The two companies “will actively pursue strategic M&A opportunities to deliver exponential growth over the long-term,” Danny Le, head of strategy and development for Masan Group, said. “We admire how SK Group has evolved into a global diversified powerhouse.”
Vietnam is “an important foundation” for SK Holdings’ Southeast Asia strategy, Woncheol Park, representative director of SE Asia investments for SK Group, said. “We will actively work together to identify strategic opportunities to expand into attractive categories in Vietnam where SK can add significant value through our know-how and technology. We believe this is the first of many investments with Masan.”