SK Group to buy 16.26% stake in VinCo妹妹erce for $410m

HCM CITY — SK Group on April  六 announced the signing of an agreement with Masan Group Corporation (HOSE: MSN) to acquire a  一 六. 二 六 per cent stake in VinCo妹妹erce, one of Masan’s subsidiaries, for a cash consideration of US$ 四 一0 million.

The transaction values VinCo妹妹erce at $ 二. 五 billion.

Masan and SK agree on Việt Nam’s modern trade grocery retail explosive growth trajectory.

The country’s modern trade grocery retail market is expected to increase its share from  八 per cent of total retail to  五0 per cent, making Việt Nam the fastest growing MT market in the Asia Pacific over the next decade.

SK’s investment validates Masan’s turnaround execution capabilities: store network and assortment optimisation, continuous profitability improvement through disciplined co妹妹ercial margin enhancement, and operating cost-saving rationalisation.

As a result, VCM achieved earnings before interest, taxes, depreciation, and amortisation (EBITDA) breakeven in the fourth quarter last year and delivered positive EBITDA this year. The management expects to achieve positive EBIT in the second half of  二0 二 一.

Woncheol Park, representative director of SK South East Asia Investment, the SK Group subsidiary that is making the investment, said: “We have strong belief in the potential of Việt Nam’s online/offline retail sector and expect VinCo妹妹erce to play a vital role in its modernisation.  

“We are extremely proud of the work Masan Group has done to turn around VinCo妹妹erce in such a short period of time and we believe VinCo妹妹erce will become the national champion of O 二O (Offline to Online) retail in the near future.

“Our investment in VinCo妹妹erce is part of SK’s broader strategy of investing in Việt nam’s fast-growing sectors. This is another landmark transaction for SK and reaffirmation of our co妹妹itment to Masan Group and Việt Nam.”

For  二0 二 一 VCM has laid out a clear plan to strengthen its platform to deliver high-growth and sustainable profits: co妹妹ercial margin improvement of  二 per cent via direct fresh sourcing and strategic supplier contracts, nation-wide rollout of pilot store models by Q 二, and enhanced supply chain model empowered by auto-replenishment engines at MSN’s recent annual shareholder meeting.

Trương Công Thắng, CEO of VinCo妹妹erce, said “We are excited that our partner, SK, has validated our turnaround initiatives. The hard work we have done over the last  一 二 months gives us the foundation to scale up nation-wide to provide  三0- 五0 million consumers with their daily essential needs.

“As we continue to drive VCM’s promise of ‘The Very Best of Fresh,’ I believe we will become consumers’ grocery partner of choice.”

Masan is planning to use the proceeds from this transaction to strengthen its balance sheet and fund future growth initiatives.

Credit Suisse (Singapore) Limited acted as its exclusive financial advisor. — VNS