SK Group and Masan Group (MSN) reach a "win-win" agreement on share transfer

SK Group (Korea) said that this group and Masan Group (stock code MSN) have reached an important agreement on the issue of MSN stock put options and transfer of shares in the WinCommerce chain.

The increased ownership in WinCommerce is expected to help Masan Group strengthen its long-term growth momentum.

On September 4, 2024, SK Group (Korea) announced that it and Masan Group (stock code MSN - HoSE) have reached an agreement to extend the exercise period of SK Group's put option on MSN shares for up to 5 years. In addition, SK Group will transfer 7.1% of its shares in WinCommerce to Masan Group for 200 million USD. WinCommerce is currently a subsidiary of Masan Group Corporation with 71.5% of charter capital owned. WinCommerce is operating the largest modern retail chain in Vietnam in terms of the number of points of sale with more than 130 WinMart supermarkets and more than 3,600 WinMart+/WiN mini supermarkets nationwide. SK Group emphasized that as part of its investment strategy, Masan Group will receive the right to purchase SK Group's remaining shares in WinCommerce in the future at the original price invested by SK Group. The transfer of a portion of its ownership stake in WinCommerce helps SK Group record profits, while continuing its long-term investment in Masan Group with the extension of its put option. For Masan Group, the increased ownership in WinCommerce is expected to help the group strengthen its control and promote growth of its core business in the long term. Especially in the context that WinCommerce has been profitable and is planning to open 1,000 more stores per year to reach the target of 10,000 stores by 2030. In 2018, SK Group - the second largest chaebol in Korea (after Samsung) became a major shareholder of Masan Group and the terms of the investment deal allow SK Group to have the option to sell MSN shares in 2024. As part of the strategic investment, SK Group also invested in WinCommerce with a 16.3% stake and in The CrownX, Masan's integrated retail consumer platform, merging WinCommerce and Masan Consumer Holdings, with a 4.9% stake. SK Group transferred a portion of its ownership in WinCommerce as part of the group's regular portfolio restructuring plan. The group also emphasized that it continues to have strong confidence in Masan Group's growth trajectory and profitability as well as Vietnam's long-term consumption growth rate. Therefore, SK Group and Masan Group will work together to realize this opportunity.

Price movements and trading volume of Masan Group's MSN shares from the beginning of 2024 to present. (Source: TradingView)

Since last year, rumors have begun to appear on the Vietnamese stock market about SK Group divesting and restructuring its investments in several major partners in Vietnam. This information has somewhat affected the stock price movements of listed companies in SK Group's investment list. However, in response to the Korean media, a representative of SK Group denied the rumors and emphasized that it is still in the process of long-term investment in Vietnam with the goal of making Vietnam the group's "business base" in Southeast Asia through investments in major corporations in Vietnam and close cooperation with the Vietnamese Government. It is estimated that since 2018, SK Group has established partnerships with leading companies in Vietnam, investing about 2.5 billion USD in many fields such as distribution, consumer goods, real estate development and healthcare... Source: https://tapchicongthuong.vn/sk-group-va-tap-doan-masan--msn--dat-thoa-thuan--win-win--ve-chuyen-nhuong-co-phan-126101.htm