Masan CEO and MHT Chairman Danny Le speaking at the recent 2024 Annual General Meeting. — Photo courtesy of Masan
HO CHI MINH CITY — Masan Hi-Tech Materials Corporation (MHT) has announced a strategic partnership with Mitsubishi Materials Corporation (MMC) in the tungsten industry.
The transaction will see MMC acquire 100% of HC Starck (HCS) shares from MHT for a total consideration of $134.5 million.
The agreement also includes a long-term agreement between the two parties for the purchase of ammonium paratungstate and tungsten oxide.
Proceeds from the sale of HCS will be used by Masan to reduce debt and achieve its target of lowering its net debt-to-EBITDA ratio to below 3.5.
The transaction is expected to deliver significant economic benefits to Masan through a one-time gain of approximately $40 million and a long-term accretion to its net income after tax of approximately $20 million to $30 million.
Additionally, Masan will retain its ownership interest in Nyobolt, a UK company specialising in fast-charging tungsten and niobium-based battery technology.
Danny Le, Masan CEO and MHT Chairman, said: “Our goal is to position MHT as a cost-efficient tungsten producer, maximize cash flow and explore strategic opportunities to transform Masan into a consumer-centric company where less is more.”
“We are proud that our strategic vision is coming to fruition. Our partnership with Mitsubishi Materials will accelerate our journey to become a global high-tech industrial materials provider.”
“This partnership will greatly benefit our customers and strengthen our ability to deliver high-quality, innovative products and solutions.
MMC's acquisition of HCS is aligned with its focus on the midstream and downstream tungsten value chain and provides it with access to production facilities in Europe, North America and China, as well as a strong tungsten scrap recycling platform.
“This transaction marks an important milestone in executing our strategy to further grow in the tungsten industry and contribute to a circular society,” said Kazuo Ohara, general manager of MMC's Metalworking Solutions Division.
The transaction, pending customary approvals, is expected to close by the end of 2024. UBS AG's Singapore branch is acting as financial advisor to MHT.
This strategic alliance is expected to establish a comprehensive global tungsten partnership and promote sustainable industry growth.
HC Starck processing plant in Goslar, Germany. — Photo by Masan
Masan Hi-Tech Materials is a leading global provider of advanced tungsten materials.
The company has operations in Vietnam, Germany, Canada and China and stands out as a leading manufacturer of midstream tungsten products.
The company operates the Nui Phao polymetallic mine and tungsten processing factory in Thai Nguyen Province.
HCS, a subsidiary of Masan High-Tech Materials, is a world-leading manufacturer of high-quality tungsten powder tailored to individual customer needs, with a focus on recycling and sustainable sourcing.
Mitsubishi Materials Corporation is a comprehensive materials manufacturer that aims to promote resource circulation to realize a recycling-oriented and carbon-free society. — VNS
