Masan High-Tech Materials Group and Mitsubishi Materials Group sign formal agreement
HO CHI MINH CITY, Vietnam, May 30, 2024 /PRNewswire/ — Masan High-Tech Materials (HNX-UpCOM: MSR, “MHT” or the “Company”) Group is pleased to announce the execution of a definitive agreement with Mitsubishi Materials Corporation (“MMC”) Group (together with MHT Group, the “Parties”).
- MMC Group will acquire 100% of the shares of HC Starck Holding (Germany) GmbH (“HCS”) from MHT Group for a share purchase price of US$134.5 million.
- The parties will enter into a long-term, mutually beneficial APT and tungsten oxide off-take agreement.
- Masan will retain its ownership interest in Nyobolt, a UK-based tungsten and niobium-based fast-charging battery technology company.
- Masan also stands to gain potential financially from the future commercialisation of black mass recycling technology developed by HCS.
The transaction proceeds will be used to reduce MHT's outstanding debt balance, consistent with Masan Group's target of reducing its net debt-to-EBITDA ratio to below 3.5x. Masan is expected to report a one-time accretive earnings of approximately US$40 million as a result of the transaction and benefit from longer-term NPAT accretion of US$20-30 million.
Nyobolt is beginning to scale and commercialize its operations. In July 2023, Nyobolt launched its EV concept with a six-minute charging time and signed agreements of intent with two major commercial customers. Masan will benefit financially as Nyobolt begins commercializing its innovative tungsten-niobium battery technology.
Danny Le, CEO of Masan Group and chairman of MHT, commented: “We will focus on rebuilding MHT into a lowest-cost tungsten producer to maximise cash flow. At the same time, we will continue to explore strategic options to transform Masan Group into a pure consumer products company – less is more.”
MMC Group's acquisition of HCS leverages the company's strengths in the midstream and downstream of the tungsten value chain. The acquisition gives MMC Group access to HCS's production sites in Europe, North America and China, as well as a comprehensive tungsten scrap recycling platform backed by unique intellectual property, including 90 patents and 53 patents pending worldwide. The transaction marks the next step in the business cooperation between the two parties and a unique opportunity to build an end-to-end global tungsten alliance.
Kazuo Ohara, general manager of MMC's Metal Processing Solutions Division, said, “We are very pleased to continue our partnership with the MHT Group and are confident that we can leverage the MMC Group's deep expertise and network to contribute to the continued success of the MHT Group and HCS. This transaction marks an important milestone in the execution of our FY2031 strategy to further grow in the tungsten industry and contribute to a circular society.”
UBS AG, Singapore branch acted as financial advisor to MHT. The transaction is expected to close by the end of 2024 and is subject to customary corporate and regulatory approvals.
About Masan High-Tech Materials Co., Ltd.
Masan Hi-Tech Materials is a global leader in providing advanced tungsten materials used in key industries such as electronics, chemical, automotive, aerospace, energy and pharmaceuticals, with production facilities in Vietnam, Germany, Canada and China serving the world. As the largest manufacturer of midstream tungsten products outside of China, the company has two research and development centers in Germany and Vietnam and currently operates the Nui Pao polymetallic mine and a state-of-the-art tungsten processing plant in Thai Nguyen Province. Masan Hi-Tech Materials is also a globally significant producer of fluorspar and bismuth.
About HC STARCK HOLDING GMBH
HCS, a wholly owned subsidiary of Masan High Tech Materials, is a world-leading manufacturer of high-quality tungsten powder tailored to individual customer needs. The company combines a century of experience in tungsten processing with a high level of innovation and technical expertise. Decades of experience in recycling and access to the world's largest tungsten reserves outside China owned by parent company Masan High-Tech Materials ensure a stable supply of conflict-free raw materials. HC Starck Tungsten Powders employs approximately 540 people across three production sites in Germany, Canada and China, and sales offices in the United States and Japan. The company's headquarters are in Goslar, Germany, where the largest production site is located.
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About Mitsubishi Materials Corporation
The MMC Group is a comprehensive materials manufacturer that meets customer needs by providing basic materials such as copper and cement. We also manufacture and sell machine parts and electronic materials and components used in automobiles and home appliances, as well as tools used in their manufacture. We are also involved in recycling and energy businesses.
Guided by its corporate philosophy of “For People, Society and the Earth,” the Mitsubishi Materials Group has a vision of “recycling resources to build a sustainable future” and a mission of “creating a sustainable future (a prosperous circular, decarbonized society).” Going forward, the Mitsubishi Materials Group will continue to contribute to the creation of a more prosperous society by developing unique materials that meet customer needs and providing them with optimal processing solutions.
contact address
Investors/Analysts
Phu Duong
Email: ir@msn.masangroup.com
media
Pham Thi Hong Van
Email: vanpth@msn.masangroup.com
This press release contains forward-looking statements regarding Masan High-Tech Materials' expectations, intentions and strategies that may involve risks and uncertainties. These forward-looking statements, including Masan High-Tech Materials' expectations, involve known and unknown risks, uncertainties and other factors, some of which are beyond Masan High-Tech Materials' control, that may cause High-Tech Materials' actual results of operations, financial condition, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Forward-looking statements should not be relied upon as predictions, future events or promises of future performance.
SOURCE Masan High-Tech Materials
