Masan increases its stake in Phuc Long, taking its value to US$453m

(Source: Phuc Long)

Vietnamese agriculture and retail conglomerate, Masan Group, has acquired an additional 34 per cent equity interest in Phuc Long Heritage, raising its stake in the tea chain from 51 to 85 per cent.

The acquisition was carried out through Masan Group’s subsidiary, The Sherpa. The deal, which is worth US$154 million, takes Phuc Long Heritage’s value to $453 million. This is the second time Masan raised its stake in the tea chain after buying 31 per cent stake earlier this year for $110 million. 

Since Masan’s first investment in the chain last year, Phuc Long Heritage has been rolling out a kiosk concept across a network of more than 2200 Masan-owned VinMart+ convenience stores. 

As of the end of the first quarter, Phuc Long operated nearly 100 standalone stores and about 750 kiosks, most of which are in Ho Chi Minh City. Phuc Long Heritage’s sales rose by 38.5 per cent during this year’s first half, generating US$35 million. 

The company said it will accelerate the opening of high-performing flagship stores while rolling out a new menu for kiosks during the second half of this year.

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