TPG, Abu Dhabi Investment Authority and Temasek Holdings led a $350 million investment in consumer retail platform CrownX Corp. The deal values the company post-deal at $8.2 billion. Post-deal, majority investor Masan Group will own 81.4 percent of CrownX, which has attracted more than $1.5 billion since inception in the first half of 2020. The capital raise will be the last for the company in preparation for an IPO in 2023-2024.
Masan Group Corporation (HOSE: MSN, “Masan”) today announced the signing of a USD350 million primary investment in The CrownX Corporation (the “Company”, “TCX”) by a consortium of investors, including TPG, Platinum Orchid (a wholly owned subsidiary of Abu Dhabi Investment Authority) (“ADIA”), and SeaTown Master Fund, managed by a wholly owned indirect subsidiary of Temasek Holdings (the “Transaction”). The Transaction marks the final capital raising at the TCX ecosystem, which has attracted over USD1.5 billion in investments from marquee global investors since its inception in 1H2020.
The Transaction implies a post-money valuation of USD8.2 billion for 100% of TCX’s equity, an equivalent of USD105 (c. VND2,415,000) per share, representing a 12% valuation uplift versus the previous capital raising round. Post the completion of the Transaction, Masan will own 81.4% of The CrownX. The Company intends to use the proceeds from the Transaction to invest in growth initiatives and conduct a share buyback.
The mini-mall concept, a unique integrated format off or online offering a broad array of daily, essential products and services, provides The CrownX a cost-efficient model to win consumer wallet share across multiple consumer use cases. The next game changer will be developing fin-tech solutions including buy now pay later products for the underserved, mass market consumers by leveraging its loyalty platform with Reddi at the core.
Mr. Danny Le, Chief Executive Officer (CEO) of Masan Group said: “We have outlined our Point of Life vision for over 7 years now. The partnership with TPG, ADIA and SeaTown is a validation of our ability to bring to life our Point of Life vision. This marks the end of our capital raising activities at The CrownX as we shift our entire focus to scale up our Point of Life platform nationwide both off and online. We look forward to a 2023-2024 international IPO of The CrownX with 3 simple KPIs: i) increasing our share of the consumer wallet by expanding our network, ii) digitizing our entire platform to become a consumer tech company, and iii) double-digit profit margins.”
“Powered by its rising middle class and rapid urbanization, Vietnam is well-positioned to be a significant driver of the next chapter of Asia’s consumption story,” said David Tan, Managing Director, TPG Capital Asia. “Having witnessed Masan’s turnaround of WinCommerce (WCM), we believe that The CrownX is the platform to capture this opportunity. They will develop the ecosystem further to expand their services to create value for all Vietnamese consumers. Leveraging our deep experience investing across the consumer sector and in Southeast Asia, we look forward to working with the management team at The CrownX to accelerate the company’s vision.”
Hamad Shahwan Al Dhaheri, Executive Director of the Private Equities Department at ADIA, said: “In one of the fastest growing consumer markets globally, The CrownX is a proven, best-in-class operator with a strong management team, well-positioned to build the leading integrated omni-channel consumer ecosystem in Vietnam. This is yet another illustration of our global strategy of investing alongside leading partners such as the Masan Group and the wider shareholder base of The CrownX. Further building on our increasing focus on Southeast Asia, this commitment underscores our belief in Vietnam’s strong underlying economic fundamentals.”
Steven Chua, Deputy CIO at SeaTown Master Fund, said: “We are very excited to have the opportunity to partner with The CrownX and Masan organization through this investment. We see a compelling long-term consumption growth story in Vietnam and The CrownX is well-positioned to capture this growth through the company’s transformative initiatives.”
All corporate actions mentioned are subject to customary corporate and regulatory approvals. Credit Suisse (Singapore) Limited acted as the exclusive financial advisor to Masan Group.
MASAN GROUP CORPORATION
Masan Group Corporation (“Masan” or the “Company”) believes in doing well by doing good. The Company’s mission is to provide better products and services to the 100 million people of Vietnam, so that they can pay less for their daily essentials. Masan aims to achieve this by driving productivity with technological innovations, trusted brands, and focusing on fewer but bigger opportunities that impact the most lives.
Masan Group’s member companies and associates are industry leaders in branded fast moving consumer goods, branded meat, modern retail, F&B retail, financial services, telecommunications, and value-add chemical processing, altogether representing segments of Vietnam’s economy that are experiencing the most transformational growth.
TPG is a leading global alternative asset firm founded in San Francisco in 1992 with $108 billion of assets under management and investment and operational teams in 12 offices globally. TPG invests across five multi-product platforms: Capital, Growth, Impact, Real Estate, and Market Solutions. TPG aims to build dynamic products and options for its clients while also instituting discipline and operational excellence across the investment strategy and performance of its portfolio.
Established in 1976, ADIA is a globally diversified investment institution that prudently invests funds on behalf of the Government of Abu Dhabi through a strategy focused on long-term value creation.
SeaTown Holdings International (“SeaTown”) is a Singapore-based investment manager focused on alternative, absolute return strategies. With over US$6bn of assets under management, SeaTown manages multi-asset and public credit strategies through open-end funds as well as private investments strategies in closed-end funds. SeaTown is a wholly-owned subsidiary of Seviora Holdings, and indirectly owned by Temasek Holdings.
This press release contains forward-looking statements regarding Masan’s expectations, intentions or strategies that may involve risks and uncertainties. These forward-looking statements, including Masan’s expectations, involve known and unknown risks, uncertainties, and other factors, some of which are beyond Masan’s control, which may cause Masan’s actual results of operations, financial condition, performance, or achievements to be materially different from those expressed or implied by the forward-looking statements. You should not rely upon forward-looking statements as predictions, future events or promises of future performance.