KKR exits Vietnam’s Masan Consumer Corp

The global investment firm first invested in one of the largest private sector companies in Vietnam in 2011 through its Asian Fund I, with a second investment in 2013 making it the biggest private equity deal in the country.

KKR has exited its $359 million investment in Masan Consumer Corporation by selling stakes to parent company Masan Group for an undisclosed amount, according to a statement.

KKR first invested $159 million for a 10 percent equity stake in Masan Consumer in 2011, valuing the company at $1.6 billion. It more than doubled its stake when it invested a further $200 million in 2013, making the investment the largest ever private equity deal in Vietnam.

Both transactions were made from KKR Asian Fund I, a 2007-vintage vehicle that raised $4 billion. Investors in the fund include California Public Employees' Retirement System, Canada Pension Plan Investment Board, Washington State Investment Board and fund of funds managers Pantheon and Asia Alternatives.

In July 2015, KKR subsidiaries MC Holdings and KKR Aggregator sold almost half of its holdings in Masan to unknown buyers and generated a 100 percent return on the transaction, according to reports.

Masan Group is one of the largest private sector companies in Vietnam, with a market capitalisation of $2.5 billion and business interests ranging from beer to consumer staples to financial services and mining.

“KKR is proud of the successful and win-win partnership with Masan Group. Masan Consumer has established itself as a leader in the Vietnamese fast-moving consumer goods industry,” co-head of private equity for KKR Ming Lu said in a statement.

“Since KKR entered into partnership with Masan Consumer in 2011, the company has grown both organically and inorganically, capitalising on the structural consumption trends and rising middle class potential in Vietnam.”

KKR, which manages over $90 billion in assets, recently completed its investment in India’s Dalmia Cement, a deal made in 2010 through the firm’s Asian Fund II, as reported by Private Equity International.