Thai giant looks to become strategic shareholder in Masan Consumer Holdings and Masan Brewery.
Singha Group, the large Thai beverage corporation, will spend $1.1 billion on acquiring shares in two subsidiaries of the Masan Group.
It will secure over 25 per cent of shares in Masan Consumer Holdings and 33.3 per cent of Masan Brewery.
The Singha and Masan agreement is the latest deal involving Thai billionaires actively seeking development opportunities in foreign markets.
According to Mr. Palit Bhirombhakdi, CEO of Singha Asia, Masan has strong distribution in every corner of Vietnam and this will provide Singha with access to a fast growing market of more than 90 million consumers and at the same time support it in expanding into new business fields.
“We are delighted to welcome Singha as a strategic partner with the ability to promote our growth both in Vietnam and in neighboring countries,” said Mr. Seokhee Won, Deputy General Director of the Masan Group and General Director of Masan Consumer.
Masan is one of the largest private enterprises in Vietnam, with market capitalization of about $2.5 billion, and owns many brands familiar among Vietnamese consumers, such as Chinsu sauce, Tam Thai Tu sauce, and Omachi noodles. Other foreign investors have poured capital into Masan previously, such as Kohlberg Kravis Roberts (KKR) and Mount Kellett Capital Management.
Singha, meanwhile, is under the control of Thai billionaire Santi Bhirombhakdi, and owns brands such as Singha, Leo, B-ing, Purra, and Sanvo. According to Forbes Mr. Bhirombhakdi is currently ranked seventh richest in Thailand, with assets estimated at $2.9 billion.