SK Group, the third-largest conglomerate from South Korea, has announced that the company has agreed to acquire a 16.3 percent stake in VinCommerce for $410 million, reports Reuters. For those who are unaware, VinCommerce is one of the biggest retailers in Vietnam and is a part of Masan Group.
The transaction values the retailer at $2.5 billion. Along with SK Inc (formerly known as SK Holdings Co Ltd), battery maker SK Innovation, SK Telecom, SK Hynix, and SK E&S are also participating in this deal through an investment unit focused in Southeast Asia.
VinCommerce is operating about 2,300 convenience stores and supermarkets in Vietnam and holds about 50 percent of the market share in the country’s consumer retailer sector. With the new investment, the company plans to accelerate online and offline distribution, logistics, and online payments.
Woncheol Park, representative director of SK South East Asia Investment, the SK Group arm that made the investment, said in a statement: “Our investment in VinCommerce is part of SK’s broader strategy of investing in Vietnam’s fast-growing sectors.”
VinCommerce achieved an EBITDA breakeven in the fourth quarter of 2020 and delivered positive EBITDA in the first quarter of 2021. The management is now expected to achieve positive EBIT in the second half of this year.
The SK Group had earlier invested about $1 billion in Vingroup and $470 million in the diversified company Masan Group.
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