Masan’s beverage unit plans to have full ownership in Vinacafe

In a document sent to the State Securities Commission of Vietnam and Ho Chi Minh City Stock Exchange, Masan Beverage Company announced that it offered to buy 401,000 shares by order matching or via agreement between June 17 and July 16.

Masan Beverage, a subsidiary of consumer goods producer Masan Consumer, has been buying stakes in Vinacafe Bien Hoa JSC since 2011, raising holding state at the coffee producer to 98.49%, equivalent to 26,579,135 shares.

The latest transaction was made in February 2018 when it bought nearly eight million shares for VND1.6 trillion ($68.67 million).

VCF share of Vinacafe Bien Hoa JSC, which targets net revenues and net profits in 2020 at VND3.3 trillion ($141.59 million) and VND780 billion ($33.47 million), was traded at VND210,100 ($9) on the stock market on Monday.

In related development, Masan Group (HoSE: MSN) announced the establishment of two subsidiaries The Sherpa and CrownX to complete the merger between VCM Development and Trading JSC and Masan Consumer Holdings (MCH), according to exchange filing.

CrownX is expected to directly holds 83.74% of VCM, the company that operates the VinMart, VinMart + chains and VinEco systems and 85.71% stake in Masan Consumer Holdings, which manages Masan Group's consumer goods business.

Masan will hold 70% of the interest in the consolidated company and Vingroup will own the remaining 30% ownership rights, according to agreement.

The merger deal surprised investors in 2019. The Companies’ leaders said the decisions were made within a month, which was a very short time for large-scale M&A deals.