Cerberus Capital Management LPC has acquired a stake in certain MCS Group companies. No financial terms were disclosed. The companies operate in the telecommunications and consumer goods sectors.
ULAANBAATAR, MONGOLIA and NEW YORK – 24 August 2020 – MCS Group (“MCS” or the “Company”), which consists of over 20 companies operating in various sectors such as energy, engineering, mining, real estate, telecommunications, and consumer goods, today announced that it has completed a transaction with an affiliate of Cerberus Capital Management, L.P. (“Cerberus”), a global leader in alternative investing. An affiliate of Cerberus has acquired approximately 20% indirect ownership or notes convertible into equity of seven MCS companies operating in the telecommunications and consumer goods sectors.
Founded in 1992, Cerberus manages $45 billion in assets across more than 20 offices around the world. As a long-term investor, Cerberus has a track record of partnering with global companies across sectors, bringing industry-leading operating and technology capabilities and financial expertise to help businesses drive innovation and achieve sustainable growth. Cerberus’ frontier markets platform, Cerberus Frontier, is at the forefront of private investing in some of the world’s fastest growing economies across Asia and Africa. Cerberus Frontier leverages a global platform, in-country presence, and hands-on portfolio management for growing companies in dynamic economies.
Over the past twenty years, MCS has successfully partnered with many foreign investors and brands, introducing new technologies and know-how to the local market as well as adopting international standards of compliance and social responsibility.
Odjargal Jambaljamts, Chairman of MCS Group, said, “This partnership will strengthen our financial position and enable us to leverage Cerberus’ operational experience, technology resources, and global expertise as we accelerate MCS’s growth plans. We look forward to working with the global Cerberus team to build on our strengths and market leadership to create an international-calibre Mongolian company, which is an important step as we evaluate future opportunities for a public listing on the domestic and international exchanges.”
Alexander Benard, Co-Head of Cerberus Frontier and Senior Managing Director, commented, “We have an extensive history in Mongolia and are excited about our new partnership with MCS. With Mongolia’s dynamic economy and strong consumer trends, we believe there are many opportunities for MCS’s fast-growing telecommunications and consumer goods businesses. We look forward to bringing our global best practices and industry-leading operating capabilities to help these businesses achieve further success.”
The transaction will not impact the continuity of the businesses or collaboration with MCS’s existing partners. Together with Cerberus, the Company will continue growing its businesses, meeting international standards, and focusing on social responsibility and sustainable growth.
Established in 1993, MCS has over 20 subsidiaries involved in energy, engineering, IT, telecommunications, property, mining, consumer goods and healthcare sectors. For more information on MCS Group, visit our website at www.mcs.mn.
Founded in 1992, Cerberus is a global leader in alternative investing with over $45 billion in assets across complementary credit, private equity, and real estate strategies. We invest across the capital structure where our integrated investment platforms and proprietary operating capabilities create an edge to improve performance and drive long-term value. Our tenured teams have experience working collaboratively across asset classes, sectors, and geographies to seek strong risk-adjusted returns for our investors. For more information about our people and platforms, visit us at www.cerberus.com.