Masan High-Tech Materials successfully completed divestment at HCStarck

On December 18, 2024, Masan High-Tech Materials (HNX-UpCOM: MSR, "MHT" or the "Company") announced that it has successfully completed the transfer of 100% of the shares in HC Starck Holding (Germany) GmbH (“HC Starck”, “HCS”) to Mitsubishi Materials Corporation (“MMC”) Group. The transaction was first announced in May 2024 (the “Transaction”).

As part of the Transaction, MHT and HCS have entered into a mutually beneficial long-term APT and tungsten oxide offtake agreement, which will provide MHT with a solid foundation to maximize its order book. Masan will retain an ownership interest and potential profits in Nyobolt, a UK-based company that provides fast-charging battery solutions using tungsten and niobium as anodes. Nyobolt is approaching large-scale commercialization. For the “black mass” recycling technology developed by HCS, Masan will retain a vested interest in the future commercialization of the technology. Upon completion of the Transaction, Masan Group will recognize a one-time gain after tax. The proceeds from the Transaction will be used to reduce MHT’s debt from approximately US$670 million to approximately US$490 million. Masan Group’s net debt to EBITDA ratio is expected to be approximately 3.17x by the end of 2024, in line with the Group’s target to maintain this ratio below 3.5x. Mr. Danny Le, CEO of Masan Group and Chairman of MHT, shared: “The HCS divestment is the first step in implementing our strategic reorientation to focus on core businesses where we can create superior shareholder value. At the same time, we are also focusing on optimizing MHT’s operations to maximize the advantages, including MHT’s stronger balance sheet, which will reduce its interest burden, and the growing demand for tungsten applications as the global economy recovers.”