Japanese food and beverage company House Foods Corp, has signed an agreement to take a stake of around US$20m in Vietnamese private-equity group Masan Group Corp.

The deal will see House Foods Corp. buy 9m new ordinary shares at a price of around VND40,000 (US$2.19) per share, representing a stake of around 1.85% of Masan Group Corp's enlarged share capital.

The transaction values Masan Group Corp. at over $1bn.

Madhur Maini, CEO of Masan Group, said: "Masan will continue to partner with leading financial and strategic players to execute on our strategy of creating local MNCs to execute Vietnam value."

House Foods Corp. produces a range of products including curry, seasonings, spices, packaged foods, pre-cooked foods, drinks and snacks.

House Foods president Hiroshi Urakami added: "We believe Vietnam has tremendous growth opportunities and that Masan Group is the ideal firm to partner with in the Vietnamese market."