One of Vietnam’s largest private companies will list its international bonds on the Singapore Stock Exchange with a maximum value of $300 million when conditions become favorable.

“The listing’s timing has not been confirmed yet due to complex procedures,” said Ms. Van Nguyen, representative from Masan Group's Public Relations. One thing is certain, “Masan will list on the Singapore Stock Market.”

Before its announcement on December 4, Masan had received shareholder approval for its plan to issue 12 million primary shares via private placement, a 50 per cent share bonus to existing shareholders and a 30 per cent cash dividend, equivalent to VND3,000 ($0.13) per share.   

In terms of sequencing, the issuance of 12 million primary shares will happen first, followed by the 50 per cent share bonus and 30 per cent cash dividend which will happen simultaneously. The cash dividend is applicable to the number of shares immediately prior to the bonus shares.

Masan will issue 12 million shares via private placement to MRC Ltd. and expect to close the deal within this month, according to Ms. Van. However, “the exact timing has not been confirmed yet”, she added.

With the asking price of VND95,000 ($4.18) per share, Masan Group will gain some VND1.14 trillion ($50.16 million) from the private placement to MRC Ltd, the investment fund co-managed by US Fortress Investment Group and Mount Kellet.

This share price is much higher than the price of Masan Group’s stocks that are trading on the Ho Chi Minh Stock Exchange (HOSE) at around VND63,300 ($2.79) a share.

In its tender offer announcement last month, the group expressed interest to acquire all outstanding common shares in Masan Resources Corporation (MSR), the largest tungsten firm in the world, through its wholly-owned subsidiary.

The company intends to purchase all of Masan Resources’s shares for VND15,500 ($0.68) per share to increase its current 72.7 per cent ownership, funded through a combination of a $35 million 2 year loan and the issuance of 12 million primary shares to MRC Ltd.

MRC Ltd. the largest foreign investor in Masan Resources with a 20.24 per cent equity stake, “has expressed interest in selling into the tender offer as part of a broader restructuring of its holding,”

The proposed cash dividend and share bonus are expected to close in the first quarter of 2017., They estimate that after the primary and bonus share issuances, the group’s charter capital will increase from the current VND7.56 trillion ($332.64 million) to VND11.475 trillion ($504.9 million).

In 2016 Masan Group is expected to reach nearly $2 billion in revenues, having grown by approximately 40 per cent over 2015. Net profits after tax and non-controlling interest are on track to reach the company’s revised target of VND2.4 trillion ($105.6 million), representing a growth of more than 60 per cent since 2015. As a result, Masan’s 2016 EBITDA, another way of measuring cash generation, is expected to reach $9.5 trillion ($418 million).

Masan Resources owns and operates the polymetallic Nui Phao Mine in northern Vietnam - reportedly the world’s largest identified tungsten mine with a reserve of 66 million tons. This mine is also one of the largest producers of acid-grade fluorspar and bismuth in the world. These rare metals have strategic significance for many industries today, including metalworking, mining, oil and chemical industries, as well as the construction sector.

Source: Masan Group website

Since the tender offer last month, Masan Group has increased its holding in Masan Resources from a 72.7 per cent stake to a 74.3 per cent stake. Masan Resource’s shares are trading on the UPCoM market, which is run by the Hanoi Stock Exchange (HNX).

With a charter capital of nearly VND7.2 trillion ($316.8 million) it is one of the biggest stocks on UPCoM by market capitalization. Its price is around VND14,900 ($0.66) a share.

VN Economic Times