Mitsubishi Materials invests $90 million for 10 per cent in Masan High-Tech Materials

Nov 27, 2020

Masan High-Tech Materials Corporation established a strategic alliance in the tungsten industry with Mitsubishi Materials Corporation with the objective of developing a leading, high-tech tungsten materials platform.

Mitsubishi Materials invests $90 million for a 10 per cent stake in Masan High-Tech Materials

As part of the strategic alliance, Mitsubishi Materials Corporation (MMC) subscribed for about 110 million newly issued ordinary shares via a private placement for a total cash consideration equivalent to $90 million. After the transaction, MMC owned 10 per cent of the fully diluted share capital of the company and becoming the second-largest shareholder.

The parties shall discuss developing a separate business unit to strengthen and unlock synergies for each respective parties’ mid-stream tungsten platform.

The ability to offer cutting-edge solutions to customers and the strategic flexibility of being integrated across the value chain is a critical factor for delivering sustainable growth and will continue to be a critical factor in the tungsten space. MHT prides itself on delivering continuous, improved, and innovative product offerings.

MHT is one of the only tungsten platforms that benefit from a 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 of world-class research and development with dedicated applications engineers that have a track record of delivering fine-tune specifications to meet end customers’ evolving demands.

After the closing of 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 the management’s transformation into a vertically-integrated high-tech tungsten platform. MMC will add significant value as a strategic partner and through partnering, the parties will be positioned to develop better, cutting-edge solutions for end customers which will accelerate growth.

Credit Suisse acted as exclusive financial advisor to MHT. Key regulatory and MHT shareholders’ approvals required for the Strategic Investment have been achieved.

Source: VIR