Between 2018 and 2019, SK Group invested more than $1 billion in shares of Masan Group and Vingroup.
Maeil Business Newspaper reports that SK Group aims to sell its stakes in these major Vietnamese companies to recoup its initial investment of 1,000 billion won (approximately $720 million at current exchange rates). This move aligns with SK Group’s ongoing business restructuring efforts, which include reassessing investments to maintain cash flow.
As part of this strategy, SK Group might utilize a put option to sell its 9% stake in Masan Group. The Chaebol is currently seeking partners to facilitate this transaction. SK Group’s 2018 investment in Masan was about $450 million, and it expects to complete the sale by the end of this year. Masan Group is a leading retail and consumer goods company in Vietnam.
In addition to divesting from Masan Group, SK Group is negotiating the sale of its shares in Vingroup, led by Vietnam’s richest man, Pham Nhat Vuong. This deal is anticipated to finalize by the end of this year, with funds likely available by the end of next year. SK Group acquired a 6.1% stake in Vingroup for $1 billion in 2019.
During an investor meeting in May 2024, Danny Le, CEO of Masan Group, addressed concerns about SK Group’s divestment. He assured that SK Group would not engage in a massive sell-off of Masan’s MSN shares.
“We will maintain our partnership with SK Group beyond their role as shareholders. SK also holds shares in The CrownX and WinCommerce and is committed to long-term investments in Vietnam. Therefore, we plan a phased divestment over 24 months to avoid impacting stock prices negatively,” said Danny Le.
He emphasized that Masan Group will work with SK to rebalance the investment portfolio or completely divest in a way that protects stock prices and benefits Masan’s shareholders.
Recently, SK Group has been taking decisive steps. The Chaebol will hold a strategic meeting from June 28 to June 29 to formulate restructuring strategies.
A crucial part of these discussions is finding ways to sustain SK On, the electric vehicle battery subsidiary of SK Innovation. There is also talk within the group about a potential merger between SK Innovation and SK E&S, an affiliated energy company. “We are still in the review phase and have not made any final decisions,” stated a senior SK Group executive.
In the context of renewable energy, a leading Vietnamese company with US listing ambitions recently partnered with a Korean Chaebol, which invested $2.5 billion in Vingroup and Masan, to develop waste-to-energy projects.
Source: Vietnam Insider