Masan Group Corporation and a consortium, including Chinese e-commerce giant Alibaba Group and Baring Private Equity Asia, on May 18 announced the signing of definitive agreements for the acquisition of a 5.5% stake in The CrownX for a cash consideration of US$400 million.
The CrownX, founded in 2020, is valued at US$6.9 billion, equivalent to US$93.50 a share. Parent company Masan will hold 80.2 percent of the retail unit.
The company is Masan’s integrated consumer retail arm that consolidates its interests in Masan Consumer Holdings (MCH) and VinCommerce (VCM).
Danny Le, Masan Group CEO, said: “This strategic partnership will accelerate our ability to achieve our goal of transforming The CrownX into a one-stop shop to serve consumers’ everyday needs, whether offline or online”.
“Our immediate priority is to modernise Vietnam’s grocery market and develop an unparalleled consumer proposition from assortment to shopping experience,” he added.
“As a long-term investor in the country, we think Vietnam has a long runway for growth supported by strong macroeconomic tailwinds and attractive demographics,” stated Janice Leow, managing director at BPEA.
As a part of the transaction, VCM will enter a strategic cooperation agreement with Lazada, Alibaba’s Southeast Asian e-commerce platform.
It will be the grocery retailer of choice on Lazada in Vietnam.