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KKR has agreed to invest $250m in Masan Group, with more than half of that being directed at the Vietnamese food & beverage company’s meat unit.
The investment is aimed at tapping into the country’s 90m consumers, as well as boosting competitiveness within Vietnam’s $18bn, but fragmented, meat sector.
The private equity house’s investment comprises a $100m purchase of secondary shares in Masan Group from Danish private equity firm PENM Partners, and a $150m investment in Masan Nutri-Science, the company’s branded meat unit.
That will give KKR a 7.5 per cent stake in Masan Nutri-Science.
Shares in Masan Group were up 2 per cent during afternoon trade in Vietnam, but had gained as much as 2.2 per cent during the morning session.
Nguyen Dang Quang, Masan Group’s chairman, said:
In a country where daily essentials such as packaged food and beverage, fresh food (meat), and financial services take up half of the average person’s wallet share, being able to deliver value for money is meaningful to our people and society. With KKR’s investment in Masan, we will be in a stronger position to deliver on our commitment to Vietnamese consumers.
Ming Lu at KKR described Masan as a “world-class partner” in Vietnam and said:
We have witnessed them develop a seasonings company into a US$2 billion diversified consumer group and look forward to again backing Masan as they execute their growth plans.