Masan and Mitsubishi Materials Corporation Group sign Sales and Purchase Agreement

Mr. Nguyen Dang Quang - Chairman of Masan Group, shared at Masan's General Meeting of Shareholders with the theme "connecting thousands of needs"

* MMC Group will acquire 100% of HC Starck Holding (Germany) GmbH (“HCS”) from MHT for USD 134.5 million.
* The parties will enter into an APT and tungsten oxide offtake agreement that will bring long-term benefits to both parties.
* Masan will retain a stake in Nyobolt, a UK-based company that provides fast-charging battery solutions using tungsten and niobium at the anode.
* Masan retains the privilege of enjoying a portion of the potential profits when the “black mass” recycling technology developed by HCS is commercialized.

HC Starck Holding, one of the world's leading suppliers of tungsten products

The proceeds from the transaction are expected to help reduce MHT's debt and contribute to Masan Group's target of reducing Net Debt to EBITDA to ≤ 3.5x. Masan Group is expected to record a one-time gain of approximately USD 40 million from this transaction and benefit from an increase in net profit after tax of USD 20-30 million in the long term.

HC Starck Holding's plant in Goslar, Germany

Nyobolt is now in the process of scaling up its operations and commercializing its products. In July 2023, Nyobolt successfully launched an electric vehicle concept with a 6-minute charge time and signed agreements in principle with two major commercial customers. Masan Group will receive potential profits when Nyobolt's fast-charging battery technology using tungsten and niobium at the anode is widely commercialized.

Mr. Danny Le - CEO of Masan Group and Chairman of MHT, shared: “Focusing on the core and maximizing value, we will restructure MHT into a cost-effective tungsten producer that maximizes cash flow. At the same time, we will continue to seek strategic solutions for Masan Group to focus on developing core retail consumer businesses.”

Mr. Danny Le - General Director of Masan Group, shared at Masan 2024 Shareholders' Meeting

The transaction leverages MMC Group’s strengths in the mid-stream and downstream tungsten value chain. MMC Group will gain access to HCS’s production facilities in Europe, North America and China as well as a comprehensive tungsten scrap recycling platform with 90 patents worldwide and another 53 patents in the application stage. The transaction marks the next step in the business collaboration between the Parties and represents an opportunity to create a comprehensive tungsten alliance at a global level.

HCS factory in Germany

“We are delighted to continue our partnership with MHT. With MMC Group’s expertise and extensive network, we are confident that we can continue to contribute to the success of MHT and HCS. This transaction marks an important milestone in our 2031 strategy to further develop the tungsten industry and contribute to the circular economy,” said Kazuo Ohara, President of Metalworking Solutions, MMC Group.

UBS AG Singapore Branch acted as financial advisor to MHT.

The transaction is expected to close by the end of 2024 and is subject to internal approvals and regulatory approvals.

Guests experience the product at the event

Masan High-Tech Materials is a global supplier of advanced high-tech tungsten materials used in key industries such as electronics, chemicals, automotive, aerospace, energy and pharmaceuticals, with manufacturing facilities in Vietnam, Germany, Canada and China, serving customers worldwide. As the world’s largest producer of mid-deep tungsten products outside of China, the Company has two research and development centers in Germany and Vietnam and operates the Nui Phao polymetallic mine and a state-of-the-art tungsten processing plant in Thai Nguyen province. Masan High-Tech Materials is also a global producer of fluorspar and bismuth.

https://masanhightechmaterials.com

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HCS, a wholly owned subsidiary of Masan High Tech Materials, is a global producer of high-quality tungsten powders that meet the full range of customer needs. The company has decades of experience in tungsten processing, combined with high innovation capabilities and technological expertise. Decades of experience in recycling and access to the world’s largest tungsten reserves outside of China, owned by parent company Masan High-Tech Materials, help the company ensure a stable supply of conflict-free raw materials. HC Starck Tungsten Powders employs approximately 540 people at three manufacturing sites in Germany, Canada and China, along with sales offices in the US and Japan. The company is headquartered at its large manufacturing facility in Goslar, Germany.

www.hcstarck.com

MHT's biofilter area

MMC Group is an integrated materials manufacturer. MMC Group meets the needs of its customers by supplying basic materials such as copper and cement. MMC Group also manufactures and sells mechanical parts, electronic materials and components used in automobiles, home appliances, etc., as well as the tools used to manufacture them. MMC Group is also involved in recycling and energy trading.

With the corporate philosophy of "For People, Society and the Earth", MMC Group pursues the vision of "Resource Circulation for a Sustainable Future" and the mission of "Creating a Sustainable Future (a prosperous, recycling-oriented and decarbonized society)". In the future, MMC Group will continue to build a richer society by creating unique materials that meet customer needs and providing processing solutions tailored to each customer./.

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