May 14, 2024
Masan High-Tech Materials and Mitsubishi Materials Corporation Group Reached Framework Agreement
Ho Chi Minh City, 14 May 2024 – 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.
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The Parties will enter into a long-term, win-win APT and tungsten oxide offtake agreement.
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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.
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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.
