HO CHI MINH CITY, Vietnam,
May 14, 2024 /PRNewswire/
-- Masan High-Tech Materials (HNX-UpCOM: MSR, "Masan High-Tech
Materials", "MHT" or "Company") today announced that it had reached
a framework agreement with Mitsubishi Materials Corporation Group
("MMC Group", and together with MHT, the "Parties"):
- MMC Group intends to acquire 100% of H.C. Starck Holding (Germany) GmbH from MHT.
- The Parties will enter into a long-term, win-win APT and
tungsten oxide offtake agreement.
- As a part of the agreement, Masan is expected to retain
its ownership in Nyobolt, a fast-charging Lithium-ion battery
technology company based in the United
Kingdom.
- Masan is also expected to retain potential monetary upside from
future commercialization of blackmass technology intellectual
property developed by HCS.
In 2020, MHT acquired 100% of HCS with the goal of bringing
tungsten recycling technology to Vietnam to transition to a more circular and
sustainable business model. In the same year, MHT entered into a
partnership with MMC Group. However, due to regulatory constraints
limiting MHT's ability to import tungsten scraps into Vietnam to implement its recycling strategy,
MHT intends to sell 100% of HCS to MMC Group to focus on optimizing
its domestic operations. This framework agreement marks the next
step in the Parties' business cooperation.
Use of proceeds from the envisaged transactions will be to
reduce MHT's outstanding debt balance. The offtake agreement with
MMC Group anchors MHT's tungsten products order book and enables it
to maximize its overall order book. The retention of Nyobolt is
strategic and there is significant potential upside: in
July 2023, Nyobolt successfully
demonstrated an EV concept with 6-minute charging time; in
addition, Nyobolt has signed Head of Terms with two major
commercial customers and is in the final stage of finalizing
contracts, demonstrating significant progress towards
commercialization. The combined transactions are expected to be
accretive to Masan Group's consolidated earnings and are consistent
with the Group's deleveraging target of Net Debt to EBITDA ≤ 3.5x.
This also marks the first step on the Group's continuing journey to
reduce interest in non-core businesses.
MMC Group's potential 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.
Binding agreements between the Parties shall be subject to
further discussions and customary corporate approvals.
ABOUT MASAN HIGH-TECH MATERIALS CORPORATION
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.
https://masanhightechmaterials.com
ABOUT H.C. STARCK HOLDING GMBH
HCS, 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 U.S. and
Japan. The company's headquarter
is at its largest production site, in Goslar, Germany.
www.hcstarck.com
ABOUT MITSUBISHI MATERIALS CORPORATION
MMC Group is an "integrated materials manufacturer." MMC Group
meets customers' needs by providing such basic materials as copper
and cement. MMC Group 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. MMC Group
is also involved in recycling and energy business.
MMC Group, under the corporate philosophy "For People, Society
and the Earth," pursues the vision of "Circulating resources for a
sustainable future" and the mission of "Create a sustainable future
(a prosperous, recycling-oriented and decarbonized society)". Going
forward, MMC Group will continue to build a richer society by
making unique materials that meet customers' needs and providing
processing solutions best suited to each customer.
CONTACTS
Investors/Analysts
Phu
Duong
Email: ir@msn.masangroup.com
Media
Pham Thi Hong
Van
Email: vanpth@msn.masangroup.com
This press release contains forward-looking statements
regarding Masan High-Tech Materials' expectation, intentions or
strategies that may involve risks and uncertainties. These
forward-looking statements, including Masan High-Tech Materials'
expectations, involve known and unknown risks, uncertainties and
other factors, some of which are beyond Masan High-Tech Materials'
control, which may cause High-Tech Materials' actual results of
operations, financial condition, performance or achievements to be
materially different from those expressed or implied by the
forward-looking statements. You should not rely upon
forward-looking statements as predictions, future events or
promises of future performance.
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