Restructuring portfolio, Masan brings in 134.5 million USD

On May 30, in Ho Chi Minh City, Masan High-Tech Materials (MHT) signed a sales contract with Mitsubishi Materials Corporation (MMC) Group.

HCS factory in Germany - Photo: Masan

Accordingly, MMC Group will acquire 100% of HC Starck Holding (Germany) GmbH ("HCS") from MHT for USD 134.5 million. The parties will enter into an offtake agreement for APT and tungsten oxide that will bring long-term benefits to both parties. Masan will retain a stake in Nyobolt, a UK-based company that provides fast-charging battery solutions using tungsten and niobium at the anode. Masan will retain the privilege to enjoy a portion of the potential profits when the "black mass" recycling technology developed by HCS is commercialized. 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 beginning 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, CEO of Masan Group and Chairman of MHT, shared: "Focusing on the core and maximizing value, we will restructure MHT into the most cost-effective tungsten producer to maximize 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." This transaction leverages MMC Group's strengths in the mid- and deep-processed 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. This transaction marks the next step in the business collaboration between the parties and the opportunity to create a comprehensive tungsten alliance on a global level.

WinMart Phu My Hung is crowded with customers shopping - Photo: Masan

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 ." 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.

Ngoc Tan

Source: https://baochinhphu.vn/tai-cau-truc-danh-muc-dau-tu-masan-mang-ve-1345-trieu-usd-102240530213846223.htm