Bain Capital, a U.S.-based multi-asset investment firm, has agreed to increase its equity investment into Masan Group, a leading consumer conglomerate in Vietnam, to $250 million from the previously announced $200 million.
Transaction terms remain the same as per the initial agreement in October 2023, Masan said in a press release on Wednesday.
Bain Capital in October announced its first investment in Masan, under which the former will buy convertible dividend preference shares at a price of VND85,000 ($3.5) each, which can be converted into ordinary shares at a 1:1 conversion ratio.
Masan will use the proceeds to strengthen its financial position and reduce its debt, the firm said.
The transaction is subject to customary corporate and regulatory approvals and is expected to close in the “next few months.” Jefferies Singapore Limited and UBS AG Singapore Branch acted as the financial advisors to Masan Group.
Masan said it will explore other strategic alternatives for equity capital, which may include diluting its interest in non-core businesses, to strengthen its liquidity profile.
The firm was also in discussion with other investors to upsize the investments to $500 million, pending prevailing market conditions and its capital needs, it said in October.
Masan’s consumer-retail businesses (Masan Consumer Holdings, WinCommerce, Masan MEATLife, and Phuc Long Heritage) saw their combined operating profits (earnings before interest and taxes or EBIT) grow 47.3% and 45.5% year-on-year in the third quarter this year and the nine months through September, respectively.
Shares of Masan Group, which are listed on the Ho Chi Minh Stock Exchange as MSN, edged up 0.8% to VND61,900 ($2.55) at 1:55 p.m. on Wednesday.