Masan High-Tech Materials to forge a strategic alliance with Mitsubishi Materials: MMC to invest US$90 million for a 10% stake in MHT
Masan High-Tech Materials Corporation (“MHT” or the “Company”) signed definitive agreements to establish a strategic alliance in the tungsten industry with Mitsubishi Materials Corporation (“MMC”) with the objective of developing a leading, high-tech tungsten materials platform.
As part of the strategic alliance, MMC will buy 109,915,542 newly issued ordinary shares via a private placement for a total cash consideration equivalent to US$90 million.
On completion of the transaction, MMC will own 10 per cent of the share capital of the Company and become the second largest shareholder.
After the transaction is completed, the parties will discuss developing a separate business unit to strengthen and unlock the synergies between their respective mid-stream tungsten platforms.
The ability to offer cutting edge solutions to customers and the strategic flexibility of being integrated across the value chain is a critical factor in delivering sustainable growth, and will continue to be a critical factor in the tungsten space.
MHT prides itself on delivering constantly improving and innovative product offerings. MHT is one of the only tungsten platforms that benefits from consistent supply of primary (concentrates) and secondary raw (recycled) materials that are then further processed into the finest quality oxides, powders, carbides, and chemicals. The success of MHT is underpinned by a combination world-class research and development with dedicated applications engineers who have a track record of delivering fine-tuned specifications to meet end customers’ evolving demands.
Post the H.C Starck (HCS) acquisition, a leading global mid-stream tungsten business, in June this year, MMC’s participation as a strategic partner is a validation of management’s transformation into a vertically integrated high-tech tungsten platform. MMC will add significant value as a strategic partner, and through the partnership the parties will be positioned to develop cutting-edge solutions for end customers that will accelerate growth, including:
- Establishing opportunities for joint collaboration and investment in revolutionary research and development of key technologies to enhance the parties’ respective high-tech tungsten portfolio;
- Enhancing the ability of both MMC and MHT to provide industry-leading quality and performance in their high-tech tungsten products going forward; and
- Strengthening the sales network in the Asia Pacific, which will broaden the consumption of MHT’s fine powders in the region.
Craig Bradshaw, Chief Executive Officer of MHT, said: “I am extremely proud that we are starting to realise our strategic vision. Forging a strategic alliance with MMC will certainly accelerate our vision to become an end-to-end global high-tech industrial materials platform. Our customers will benefit the most as this partnership will strengthen our capabilities to supply quality and innovative products and solutions.
“The alliance also positions MHT and HCS to build a mid-stream tungsten Asian franchise, which is the missing piece of our strategic puzzle. I am extremely excited and looking forward to developing a long-term, win-win partnership with MMC.”
Makoto Shibata, Director and Chief Financial Officer of MMC, said: “We have set the tungsten business including the cemented carbide tool business to be one of the major pillars of our growth strategy. I am excited about the new collaboration which our investment in MHT will create and it will have a significant impact on our future.”
Credit Suisse acted as the exclusive financial advisor to MHT.
The closing of the strategic investment is subject inter alia to certain regulatory approvals (including governmental approvals in Vietnam) and MHT shareholders’ approval.
ABOUT MASAN HIGH-TECH MATERIALS CORPORATION
Masan High-Tech Materials (MHT) is a subsidiary of Masan Group. The company, a leading supplier of critical minerals including tungsten, fluorspar and bismuth, is currently operating a world-class polymetallic mineral resource and chemical processing plant in northern Vietnam. Masan High-Tech Materials is also a leading international supplier of refractory technology metals to growth industrial sectors such as electronics, chemicals, automotive, medical technology, aviation and aerospace, energy and environmental technology from its own production locations in Europe, America and Asia. Masan High-Tech Materials’ vision is to show the world that a Vietnamese company can lead the transformation of the global tungsten market.
ABOUT MITSUBISHI MATERIALS CORPORATION
Mitsubishi Materials Group is an “integrated materials manufacturer.” Mitsubishi Materials Group meets customers’ needs by providing such basic materials as copper and cement. Mitsubishi Materials 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. Mitsubishi Materials Group is also involved in recycling and the energy business.
Mitsubishi Materials Group, under the corporate philosophy of “For People, Society and the Earth,” pursues the vision of “We will become the leading business group committed to creating a sustainable world through materials innovation, with the use of our unique and distinctive technologies, for People, Society and the Earth.” Going forward, Mitsubishi Materials 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.