HCM CITY — Masan HPC Company Limited (HPC), a wholly-owned subsidiary of Masan Consumer Corporation (MCH), has successfully acquired a 52 per cent stake of Net Detergent JSC (NETCO) at an average price of VND48,000 (US$2.07) per share, according to a press release.
This implies a full valuation of NETCO at $46 million and a price to earnings multiple of 13.
MCH plans to partner with NETCO to unlock potential synergies and drive double digit growth in the medium term.
The immediate focus will be to integrate NETCO with Masan’s general trade distribution network with 300,000 points of sale and modern trade platform with 3,000 supermarkets and minimart stores nationwide. At present, 35-40 per cent of the home and personal care market is consumed in the modern trade channel.
NETCO, established in 1968, is a local home care business. The company achieved net revenue of VNĐ1.15 trillion ($49.5 million) in 2019, which rose 3.6 per cent compared to 2018. Post-tax net profit reached VNĐ81 billion, up by 42.3 per cent year-on-year, primarily driven by its two popular laundry detergent brands, NET and NETSOFT.
In 2018, NETCO delivered net revenue of VNĐ1.1 trillion and post-tax net profit of VNĐ57 billion.
The company’s current market share in the laundry segment is 1.5 per cent, currently trailing Unilever (54.9 per cent), Procter and Gamble (16.0 per cent), Đại Việt Hương (11.6 per cent), LIX (2.7 per cent) and Vico (2.4 per cent).
MCH, a subsidiary of Masan Group Corporation, is one of Việt Nam’s largest branded food and beverage companies with large consumer categories such as seasonings, convenience food and beverages. MHC’s well-known brands include Chin-su, Nam Ngư, Tam Thái Tử, Omachi, Kokomi, Vinacafe, Wake-Up, Wake-up 247, Vivant and Vĩnh Hảo.
Masan Group to issue 100 million bonds
According to Masan Group JSC (MSN), the State Securities Commission has granted MSN a certificate of registration for public offering of bonds.
The total number of bonds offered to the public is 100 million, with a par value of VNĐ100,000 ($4.31) per bond.
MSN will launch four offers of bonds. MSN will offer 30 million bonds in the first launch, 20 million bonds in the second launch, 30 million bonds in the third launch and 20 million bonds in the fourth launch.
The company is expected to raise VNĐ10 trillion through the four bond issuances. About VNĐ5 trillion from the proceeds will be contributed to the charter capital of MSN’s member company Masan Vision Co Ltd.
Up to VNĐ3 trillion and VNĐ1 trillion from the proceeds will be granted to Masan Consumer Holdings Co Ltd and MNS Meat Hà Nam Co Ltd as loans, respectively.
MSN will use another VNĐ1 trillion to pay internal debt owed to Núi Pháo Mine Exploitation and Process Company Ltd.
The first issuance is expected to take place on March 9, 2020. With 30 million non-convertible bonds issued, MSN will raise VNĐ3 trillion.
The bonds are not guaranteed with assets and are not in the form of subordinated debts. Their term is three years, counted from the date of issuance. The bond will be paid every six months.
In 2019, MSN's post-tax net profit reached VNĐ6.36 trillion, up 13.2 per cent compared to 2018. Post-tax net profit allocated to the company's shareholders increased by 13.0 per cent to VNĐ5.6 trillion. — VNS
