Milbank LLP advised Masan Group Corporation (“Masan”), one of the top private sector companies in Vietnam, on several minority investments into two of its retail affiliates. The aggregate transaction value is around US$810 million.
Milbank advised Masan in connection with SK Group’s minority investment in Masan’s consumer retail arm and food supply chain, VCM Services and Trading (“VCM”). SK Group’s 16.26% stake in VCM will further the company’s goal towards becoming the leading offline-to-online retailer in the region and catalyze VCM’s growth trajectory in the modern trade grocery retail space by utilizing proceeds from the transaction to strengthen its balance sheet and fund future growth initiatives.
Subsequently, Milbank represented Masan in connection with an acquisition of a combined 5.5% stake in Masan’s integrated consumer retail arm, The CrownX, Vietnam’s largest retail company, by a consortium led by Alibaba Group and Baring Private Equity Asia. This strategic investment is designed to combine Alibaba’s online retail expertise with Lazada and Masan’s leading offline network to accelerate The CrownX’s ability to serve as a comprehensive, all-inclusive retail marketplace, to expand its reach to serve consumers in Vietnam nationwide, whether offline or online, and to transform into an “all-in-one” platform to serve consumers.
The Milbank team for both transactions was led by Singapore partner Jacqueline Chan and included lead associate Stephanie Kam, with associates Min Kim and Hua Chan assisting in The CrownX and the VCM investments, respectively.
“We are pleased to have played a role in the success of both of these investments in Masan Group, which continually makes strategic partnerships that strive to modernize Vietnam’s retail landscape,” Ms. Chan said. “Leveraging our expertise advising on M&A activity in the Asia-Pacific region, we look forward to supporting Masan in its next stage of growth.”
