Masan Consumer plans to acquire 60% stakes at Net Detergent

Masan Consumer (UPCoM: MCH), an arm of Vietnamese conglomerate Masan Group, announced that Masan HPC, a newly established home and personal care subsidiary, has launched a tender offer to acquire up to 60% shares of Net Detergent JSC.

The offer price was announced at VND48,000 ($2.08) per share, implying a full valuation of NETCO at $46 million.

The tender aligns with Masan’s 5-year strategic plan to broaden its product portfolio to better serve 100 million Vietnamese consumers, statement said.

Home and personal care market is one of the largest and most attractive consumer sectors in Vietnam with a total market size of $3.1 billion and fast-growing opportunities to build Vietnamese power brands.

The deal is a strategic entry point for Masan to build a diversified HPC platform.

“We believe the HPC sector is still at the early stages of growth when compared to other developed markets. Masan Consumer, together with other local companies, is confident that we are best positioned to develop winning value-added innovations and aspirational brands,” said Truong Cong Thang, Chairman and CEO of Masan Consumer.

NETCO, established in 1968, is a leading local home care business.

In 2018, NETCO delivered net revenue of VND1,117 billion ($48 million) and net profit after tax of VND57 billion ($2.45 million), primarily driven by its two popular laundry detergent brands NET and NETSOFT.

The company’s current market share in the laundry segment is 1.5%, currently trailing Unilever with  54.9%, Procter and Gamble with 16.0%, Dai Viet Huong with 11.6%.  

MCH plans to work alongside NETCO to unlock potential synergies and drive double digit top and bottom line growth, as there is high existing overlap with Masan’s current 300,000 selling points.

The Transaction is subject to customary regulatory and corporate approvals and is expected to be completed within 2 months in accordance with tender offer regulations.

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