Vietnamese billionaire enters $10 billion pork, animal feed market

After successfully entering the fish sauce market, billionaire Nguyen Dang Quang has invested in two segments with high potential: the US$10 billion pork and animal feed market.

ty-phu-nguyen-dang-quang

Billionaire Nguyen Dang Quang, Chairman of Masan Group.

Shareholders of Masan MEATLife (MML) of billionaire Nguyen Dang Quang have approved a business restructuring plan. Accordingly, Masan MEATLife will issue three-year non-convertible bonds with a total value of VND 7,284 billion. The annual interest rate is 2%, with one-time payment, the price of 10,000 VND/share.

Nearly 79% of the shares of MML are held by Masan Group, over 9% by Masan Vision Co., Ltd. and nearly 7.1% by VN Consumer Meat II. They are the main buyers in the upcoming issuance of MML shares.

Masan MEATLife, formerly known as Masan Nutri Science (MNS), was renamed and listed on the stock market in 2019. MML was built with the vision of exploring the US$10 billion pork market in Vietnam.

In 2015, Masan Group merged its two feed businesses, Anco and Proconco, with Masan Meatlife, and three years later the firm started selling MeatDeli meat. In the first quarter of 2021, Masan Meatlife's after-tax profit rose by more than 10 times to over VND 146 billion.

According to its plan, after separating the meat segment, Masan Meatlife will aim for 10% of the market share by 2025, corresponding to a revenue of VND 35,000-45,000 billion. The profitability of the meat segment is expected to be very high, doubling the current rate of 17% of Masan Group. Masan Meatlife currently has two processing plants in Ha Nam and Long An provinces, with a capacity of 1.4 million heads per year, equivalent to 140,000 tons a year.

According to Bloomberg, Masan Group wants to raise $ 1 billion to invest in the animal feed segment, which includes selling shares to its strategic partners.

 

Recently, the price for Masan Meatlife stocks increased strongly, from VND60,000/share in early July to nearly VND80,000 per share at present.

Masan Group in recent years has been actively mobilizing international capital. In mid-August 2021, Masan raised another $200 million from South Korea’s PE fund.

In April 2021, Masan sold a 16.3% stake in VinCommerce to SK Group for $410 million. SK Group currently owns a 29.2% stake in VinCommerce, the operator of Vinmart and Vinmart+ supermarket chains.

In June 2021, Masan raised $400 million from Alibaba and Baring Private Equity Asia for The CrownX, at a valuation of nearly $7 billion. After this issuance, Masan's ownership rate in The CrownX is 80.2%.

In the second quarter of 2021, Masan Group recorded net revenue of more than VND 21.2 trillion, up 19% over the same period last year. Profit also reached over VND1,000 billion.

V. Ha

Attracting billions of USD, VN billionaire acquires many local brands

Attracting billions of USD, VN billionaire acquires many local brands

The flow of international capital has helped Vietnamese businesses grow quickly and build multi-sectoral businesses via big mergers and acquisition deals.

 
 

Other News

.
Vietnam’s rice price surges, surpasses that of Thailand
Vietnam’s rice price surges, surpasses that of Thailand
BUSINESSicon  13/10/2021 

The export price of Vietnam’s 5% broken rice has soared recently, surpassing that of Thailand and far outstripping the rice prices of India and Pakistan, according to the Vietnam Food Association.

Local authorities urged to set green corridor for domestic flights
Local authorities urged to set green corridor for domestic flights
FEATUREicon  13/10/2021 

The first commercial flights have been provided in the new normal period. However, the application of different regulations in different localities have caused problems.

Commodity exports via e-commerce promoted during COVID-19 pandemic
Commodity exports via e-commerce promoted during COVID-19 pandemic
BUSINESSicon  13/10/2021 

Representatives from State management bodies and companies speak about the advantages and challenges Vietnamese businesses face in e-commerce, especially commodity exports.

VIETNAM BUSINESS NEWS OCTOBER 13
VIETNAM BUSINESS NEWS OCTOBER 13
BUSINESSicon  13/10/2021 

Vietnam grasps opportunities to expand agricultural export market

Tax cut proposed to stabilise domestic petrol price
Tax cut proposed to stabilise domestic petrol price
BUSINESSicon  13/10/2021 

Calls have been made for tax cuts to stabilise domestic fuel prices as global oil prices see continual increases.

PM says Gov't to stand with businesses during pandemic
PM says Gov't to stand with businesses during pandemic
BUSINESSicon  13/10/2021 

Prime Minister Pham Minh Chinh congratulated and sent his best regards to all Vietnamese entrepreneurs to mark Vietnam Entrepreneurs' Day (October 13) during a meeting in Hanoi yesterday. 

SOE equitisation slow this year due to COVID-19
SOE equitisation slow this year due to COVID-19
BUSINESSicon  13/10/2021 

The outbreak of COVID-19 in many localities has delayed the equitisation of State-owned enterprises (SOEs).

Unemployment, underemployment unprecedentedly high
Unemployment, underemployment unprecedentedly high
BUSINESSicon  13/10/2021 

The number of employed people in Q3/2021 fell sharply compared to the previous quarter and the same period of last year, while unemployment and underemployment rates increased to an all-time high.

Intel, Samsung eye fully running HCM City plants in late November
Intel, Samsung eye fully running HCM City plants in late November
BUSINESSicon  12/10/2021 

Intel Corp. and Samsung Electronics Co. are both aiming to resume full operations of their HCM City plants by the end of November.

FDI inflow into Vietnam still on upturn trend
FDI inflow into Vietnam still on upturn trend
BUSINESSicon  12/10/2021 

Despite impacts of the COVID-19 pandemic, the inflow of foreign direct investment (FDI) into Vietnam still rose 4.4 percent year on year in the first nine months of 2021 to 22.15 billion USD.

To have free trade zone, Hai Phong needs special mechanism
To have free trade zone, Hai Phong needs special mechanism
BUSINESSicon  12/10/2021 

Some National Assembly Deputies expressed their concerns about the establishment of a free trade zone (FTZ) in Hai Phong at a National Assembly Standing Committee session on October 11.

In new normal, businesses are afraid of ‘sub-licenses’
In new normal, businesses are afraid of ‘sub-licenses’
FEATUREicon  13/10/2021 

Most enterprises can now resume usual operations as Vietnam has entered the new normal period. However, their production and business have been obstructed by ‘sub-licenses’, or new regulations set by agencies.

Two thirds of HCM City industries reopen
Two thirds of HCM City industries reopen
BUSINESSicon  12/10/2021 

The number of enterprises reopening at export processing zones and industrial parks in HCM City has reached 66.8 per cent, while at the Saigon Hi-Tech Park the rate is 74.3 per cent.

Government signs decision on special investment incentives
Government signs decision on special investment incentives
BUSINESSicon  12/10/2021 

Standing Deputy Prime Minister Pham Binh Minh has just signed Decision No 29/2021/QĐ-TTg of the Prime Minister on special investment incentives.

Sugar stocks expected to benefit from trade remedies
Sugar stocks expected to benefit from trade remedies
BUSINESSicon  12/10/2021 

Sugar producers expect the 2021-2022 crop, which is starting from July 1, will be more prosperous. 

Vietnamese-born duo make world’s first sneakers from residual coffee grounds
Vietnamese-born duo make world’s first sneakers from residual coffee grounds
BUSINESSicon  12/10/2021 

More and more startups nowadays are committed themselves to finding innovative solutions to environmental problems. 

VIETNAM BUSINESS NEWS OCTOBER 12
VIETNAM BUSINESS NEWS OCTOBER 12
BUSINESSicon  12/10/2021 

Detailed policies needed to help firms get loans

Vietnam wood industry targets US$15 billion export revenue
Vietnam wood industry targets US$15 billion export revenue
BUSINESSicon  12/10/2021 

This year Vietnam targets earning $14.5 billion of export revenue from wood and forest products.

THACO completes purchase of RoK’s Emart hypermarket in Vietnam
THACO completes purchase of RoK’s Emart hypermarket in Vietnam
BUSINESSicon  12/10/2021 

THACO said it has completed the acquisition of hypermarket business in Vietnam of Emart Inc of the Republic of Korea

Vietnam's economic growth to recover from Q4: Economist
Vietnam's economic growth to recover from Q4: Economist
BUSINESSicon  11/10/2021 

The Vietnamese economy is likely to gradually recover from the fourth quarter of 2021 and escape the minus growth seen in the third quarter.

 
 
 
Leave your comment on an article

OR QUICK LOGIN