Mitsubishi Materials Corporation spends $134.5 million acquiring H.C. Starck

Transaction proceeds will be used to reduce Masan High-Tech Materials outstanding debt balance, consistent with Masan Group’s target to reduce Net Debt to earnings before interest, taxes, depreciation, and amortisation (EBITDA) to below 3.5x.

Masan is expected to report a one-time profit gain of approximately $40 million as a result of the transaction and benefit from long-term net profit after tax of $20-30 million.

Masan will retain its ownership in Nyobolt, a fast-charging tungsten and niobium-based battery technology company based in the United Kingdom.

Nyobolt is starting to scale and commercialise its operations. In July 2023, Nyobolt unveiled an EV concept with 6-minute charging time and has signed terms with two major commercial customers. There is monetary upside for Masan as Nyobolt starts to commercialise its innovative tungsten-niobium battery technology.

Masan will also retain potential monetary upside from future commercialisation of black mass recycling technology developed by HCS.

Danny Le, CEO of Masan Group said, “We will focus on rebuilding to the lowest cost producer of tungsten to maximise 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.”

Mitsubishi Materials Corporation’s acquisition plays to its strengths in the mid-stream and down-stream tungsten value chain. The acquisition will provide access to 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 Mitsubishi Materials Corporation’s Metalworking Solutions business, said, “We are very pleased to continue to partner with Masan High-Tech Materials Group and are confident that we can add to the continued success, leveraging our deep expertise and network. This transaction represents an important milestone in the execution of our 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 Masan High-Tech Materials Group. The closing of the transaction is expected by the end of 2024 and is subject to customary corporate and regulatory approvals.

Masan High-Tech Materials is the global leader in providing advanced tungsten materials used in key industries such as electronics, chemical, automotive, aviation and aerospace, energy and pharmaceuticals with production facilities in Vietnam, Germany, Canada and China, servicing the world.

As the largest manufacturer of mid-stream Tungsten products outside of China, the Company has two research and development centres in Germany and Vietnam, and it is currently operating the Nui Phao polymetallic mine and a state-of-the-art tungsten processing plant in Thai Nguyen province. Masan High-Tech Materials is also a globally significant producer of fluorite and bismuth.

H.C. Starck Holding (Germany) GmbH, a wholly owned subsidiary of Masan High Tech Materials, is the world's leading manufacturer of high-quality tungsten powder tailored to individual customer needs. The company combines a century of experience in tungsten processing with high innovative power and technological expertise.

Decades of experience in recycling and access to the world's largest tungsten reserves outside of China, owned by the company's parent group Masan High-Tech Materials, ensure stable supply with conflict-free raw materials. H.C. Starck Tungsten Powders employs around 540 people at three production sites in Germany, Canada and China-plus sales offices in the United States and Japan. The company's headquarters is at its largest production site, in Goslar, Germany.

Mitsubishi Materials Corporation is an "integrated materials manufacturer." The group meets customers' needs by providing such basic materials as copper and cement. It also manufactures and sells mechanical parts, electronic materials and components used in automobiles, home appliances etc., as well as the tools used to make them. Mitsubishi Materials Corporation is also involved in recycling and energy business.

Masan High-Tech Materials has just earned the Great Place to Work – Vietnam 2023 certification by Great Place to Work, an international organisation specialising in workplace culture.

Masan High-Tech Materials (HNX-UpCOM: MSR) has announced that it has reached a framework agreement with Mitsubishi Materials Corporation Group.

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