MSN postpones VND3 trillion bond issue plan
MSN postpones VND3 trillion bond issue plan
Private equity firm Masan Group Corporation (MSN) has announced it will postpone the issue of VND3 trillion (US$132.2 million) nonconvertible bonds, which was initially scheduled for this quarter.
Masan Group had planned to seek shareholders’ approval for its plan to issue up to 30 million bonds at the face value of VND100,000 apiece this month. The warrant-linked bonds are unsecured and non convertible with maturity of 24 months and fixed coupon rate of 10 per cent per year.
The bond issue plan aimed to raise capital to scale up the company’s operation and restructure its debts.
However, in its latest filing to the HCM Stock Exchange, Masan Group said it is concentrating on the treasury buyback scheme, and due to market volatility, it has decided to cease the collection of shareholders’ opinion in writing in connection with this plan.
Masan Group plans to buy back up to 114.8 million shares, equivalent of 10 per cent of the total outstanding shares, as its treasury stock. The purpose of the buyback is to reduce the number of outstanding shares in the market.
The trade is expected to be implemented between October 16 and November 14 through order matching or put-through transactions on the HCM Stock Exchange.
The company’s most recent buyback was the purchase of more than 9.2 million shares in October 2016.
Shares of Masan Group have lost nearly 10 per cent this year, and were being traded at VND58,500 ($2.58) per share on Monday.
