Masan High-Tech Materials Group (HNX-UpCOM: MSR, “MHT” or “Company”) announced the signing of definitive agreements with Mitsubishi Materials Corporation Group (“MMC”) (together with MHT Group, the “Parties”):
- MMC Group will acquire 100% of H.C. Starck Holding (Germany) GmbH (“HCS”) from MHT Group for equity purchase price of US$134.5 million.
- The Parties will enter into a long-term, win-win APT and tungsten oxide offtake agreement.
- Masan will retain its ownership in Nyobolt, a fast-charging tungsten and niobium-based battery technology company based in the United Kingdom.
- Masan will also retain potential monetary upside from future commercialization of black mass recycling technology developed by HCS.
Transaction proceeds will be used to reduce MHT’s outstanding debt balance, consistent with Masan Group’s target to reduce Net Debt to EBITDA to below 3.5x. Masan is expected to report a one-time profit gain of approximately US$40 million as a result of the transaction and benefit from long-term NPAT uplift of US$20-30 million.
Nyobolt is starting to scale and commercialize its operations. In July 2023, Nyobolt unveiled an EV concept with 6-minute charging time and has signed Head of Terms with two major commercial customers. There is monetary upside for Masan as Nyobolt starts to commercialize its innovative tungsten-niobium battery technology.
Danny Le, Chief Executive Officer of Masan Group and Chairman of MHT, commented: “We will focus on rebuilding MHT to the lowest cost producer of tungsten to maximize cash flows. At the same time, we will continue to explore strategic alternatives to transform Masan Group into a consumer pure-play. Less is more.”
MMC Group’s acquisition of HCS plays to its strengths in the mid-stream and down-stream tungsten value chain. The acquisition will provide MMC Group with access to HCS’s production hubs in Europe, North America and China as well as a comprehensive tungsten scrap recycling platform backed by proprietary intellectual property including 90 worldwide patents and another 53 patents in the application phase. The transaction marks the next step of business cooperation between the Parties, representing a unique opportunity to create an end-to-end global tungsten alliance.
Kazuo Ohara, President of MMC’s Metalworking Solutions business, said: “We are very pleased to continue to partner with MHT Group and are confident that we can add to the continued success of MHT Group and HCS, leveraging MMC Group’s deep expertise and network. This transaction represents an important milestone in the execution of our FY2031 strategy to further grow in the tungsten industry and contribute to a recycling-oriented society.”
UBS AG Singapore Branch acted as the financial advisor to MHT. The closing of the transaction is expected by the end of 2024 and is subject to customary corporate and regulatory approvals.
