Alibaba invests in VinMart operator The CrownX
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A consortium led by Chinese e-commerce giant Alibaba will invest $400 million in the subsidiary of conglomerate Masan Group that operates retail chain VinMart.
The consortium, including Baring Private Equity Asia, one of the largest private equity firms in Asia, has signed an agreement to acquire a 5.5 percent stake in The CrownX, a deal that values the company at $6.9 billion.
Masan will own an 80.2 percent stake in the company after the deal.
With Alibaba on board, The CrownX will partner with its Southeast Asian e-commerce company Lazada to accelerate the offline to online market in Vietnam.
VinCommerce, the subsidiary of The CrownX that operates the VinMart supermarket and VinMart+ convenience store chains, will be the preferred grocery retailer on Lazada in Vietnam, and its outlets will be used as pick-up points for online orders.
“The transaction marks a shared vision … that The CrownX has the potential to establish Vietnam’s first tech-enabled consumer ecosystem and expand its reach to serve consumers nationwide,” Masan said in a statement.
It is also in discussions with other investors for a further strategic investment of $300 – 400 million in The CrownX, and they are expected to close this year.
Questions & Answers
Q.What is the primary purpose of Alibaba's investment in The CrownX?
What is the primary purpose of Alibaba's investment in The CrownX?
Alibaba's investment, through its e-commerce company Lazada, aims to accelerate the offline to online market in Vietnam. VinCommerce outlets will become preferred grocery retailers on Lazada and serve as pick-up points for online orders.
Q.What percentage of The CrownX will Masan Group own after this deal is completed?
What percentage of The CrownX will Masan Group own after this deal is completed?
After the consortium's acquisition of a 5.5 percent stake, Masan Group will retain an 80.2 percent ownership stake in The CrownX. This maintains Masan as the majority shareholder.
Q.Who else is involved in the consortium investing in The CrownX, besides Alibaba?
Who else is involved in the consortium investing in The CrownX, besides Alibaba?
Baring Private Equity Asia is also part of the consortium investing in The CrownX. It is described as one of the largest private equity firms operating across Asia.
Q.Are there any plans for further investment in The CrownX from other parties?
Are there any plans for further investment in The CrownX from other parties?
Yes, Masan is currently in discussions with other investors for an additional strategic investment of between $300 million and $400 million in The CrownX. These deals are expected to conclude this year.
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