Masan High-Tech Materials Completes Divestment of H.C. Starck Holding

On December 18, 2024, Masan High-Tech Materials (MHT) announced the completion of its sale of 100% of H.C. Starck Holding (Germany) GmbH (HCS) to Mitsubishi Materials Corporation (MMC) Group, as first reported in May 2024.

As part of the Transaction, MHT and HCS signed an off-take agreement for APT and tungsten oxide, ensuring long-term benefits for both parties while establishing a solid foundation for MHT to maximize order volumes.

Masan will retain its stake and potential profits in Nyobolt, a UK-based company specializing in fast-charging battery solutions utilizing tungsten and niobium at the anode. Nyobolt is progressing toward large-scale product commercialization. Regarding the “black mass” recycling technology developed by HCS, Masan will maintain the exclusive right to a share of profits when this technology is commercialized in the future.

Following the Transaction, Masan Group will record a one-time after-tax profit gain. The proceeds will be used to reduce MHT’s debt from approximately $670 million to $490 million. Masan Group’s net debt to EBITDA ratio is expected to be around 3.17 times by the end of 2024, aligning with the group’s target of maintaining a ratio below 3.5 times.

Mr. Danny Le, CEO of Masan Group and Chairman of MHT, commented:
“The sale of HCS is the first step in realigning our business platform to focus on where we can create outsized shareholder value. At the same time, the transaction creates a healthier MHT balance sheet to ensure we remain the lowest-cost producer of tungsten to take advantage of the macro and micro tailwinds-increasing demand for tungsten applications driven by improving underlying global economy.”

Source: Dan Tri News