The management board of Masan Group has approved a plan to issue non-convertible international bonds worth up to US$300 million, the company announced in a filing to the State Securities Commission on December 13.The USD-denominated bonds have a face value of $1,000 each and would be listed on the Singapore Stock Exchange, the statement said without giving a specific timeframe.
The 5-year and 10-year bonds will be issued in accordance with Regulation S and/or 144A of the US Securities Act.
Prospective investors include foreign institutions, investment funds and non-public banks. Credit Suisse (Singapore) Ltd and Deutsche Bank AG’s Singapore branch are advising Masan Group on the deal.
Masan Group is the HCM Stock Exchange’s eighth biggest listed firm with market capitalisation of nearly VND47 trillion ($2.1 billion) as of December 14.
Masan shares closed yesterday up 1.8 per cent after a two-day drop, valued at VND62,100 a share. The shares have lost nearly 20 per cent in value this year.
Early last week, the company secured board approval to pay a 50-per-cent share bonus to increase its equity and a 30-per-cent cash dividend, payments which are expected to completed in the first quarter of next year.
This is the first time Masan Group has decided to pay a dividend since its share debut in November 2009. Ending September, the firm had retained earnings of over VND8.5 trillion
In a related development, Masan announced it would issue 12 million shares in a private placement to MRC Ltd, an investment fund managed by the US Fortress Investment Group and Mount Kellett, for VND95,000 per share.
The proceeds from the issuance will be used to finance Masan Horizon to purchase shares of Masan Resource (MSR).
In a statement to the Ha Noi Stock Exchange on December 12, Masan Horizon registered to buy nearly 180.2 million shares of Masan Resource from December 13-26. If the transaction is completed successfully, Masan Horizon will raise its holding here from the current 72.74 per cent to 97.79 per cent.
In a tender in November, Masan Horizon offered to buy MSR shares at VND15,500 a share, slightly higher than its price of VND14,500 on the Unlisted Public Company Market on December 14.