Masan "locks in" investment, focuses on retail consumption

Under this Agreement, MMC Group will acquire 100% of HC Starck Holding (Germany) GmbH (HCS) from MHT for USD 134.5 million. The Parties will enter into a long-term mutually beneficial APT and tungsten oxide offtake agreement.

The Parties will enter into a mutually beneficial long-term offtake agreement for APT and tungsten oxide. Masan will retain an ownership interest in Nyobolt, a UK-based company that provides fast-charging battery solutions using tungsten and niobium at the anode. Masan will retain a vested interest in potential profits when the “black mass” recycling technology developed by HC Starck Holding is commercialized.

HC Starck Holding, one of the world's leading suppliers of tungsten products.

The proceeds from the transaction are expected to help reduce MHT's debt and contribute to Masan Group's target of reducing Net Debt to EBITDA to ≤ 3.5x. Masan Group is expected to record a one-time gain of approximately USD 40 million from this transaction and benefit from an increase in net profit after tax of USD 20-30 million in the long term.

Nyobolt is now in the process of scaling up its operations and commercializing its products. In July 2023, Nyobolt successfully launched an electric vehicle concept with a 6-minute charge time and has signed agreements in principle with two major commercial customers. Masan Group will receive potential profits when Nyobolt's fast-charging battery technology using tungsten and niobium at the anode is widely commercialized.

Mr. Danny Le, General Director of Masan Group, shared at the 2024 Masan Shareholders' Meeting.

Mr. Danny Le, CEO of Masan Group and Chairman of MHT, shared: “By focusing on the core and maximizing value, we will restructure MHT into a cost-effective tungsten producer that maximizes cash flow. At the same time, we will continue to seek strategic solutions for Masan Group to focus on developing its core retail consumer businesses.”

The transaction leverages MMC Group’s strengths in the mid-stream and downstream tungsten value chain. MMC Group will gain access to HCS’s production facilities in Europe, North America and China as well as a comprehensive tungsten scrap recycling platform with 90 patents worldwide and another 53 patents in the application stage. The transaction marks the next step in the business collaboration between the Parties and represents an opportunity to create a comprehensive tungsten alliance at a global level.

Mr. Kazuo Ohara, President of Metalworking Solutions Business Unit of MMC Group, said: “We are delighted to continue our partnership with MHT. With MMC Group’s expertise and extensive network, we are confident that we can continue to contribute to the success of MHT and HCS. This transaction marks an important milestone in the implementation of our 2031 strategy to further develop the tungsten industry and contribute to the circular economy .”

HC Starck Holding's plant in Goslar, Germany.

UBS AG Singapore acted as financial advisor to MHT. The transaction is expected to close by the end of 2024 and is subject to internal approvals and regulatory approvals.

Source: https://baotainguyenmoitruong.vn/masan-chot-lai-khoan-dau-tu-don-luc-cho-mang-tieu-dung-ban-le-374878.html