Masan High-Tech Materials successfully exited its downstream business H.C. Starck

Ho Chi Minh City, 18 December 2024, Masan High-Tech Materials (HNX-UpCOM: MSR, "MHT" or "Company") today announced the successful closing of the sale of 100% of H.C. Starck Holding (Germany) GmbH (“H.C. Starck”, “HCS”) to Mitsubishi Materials Corporation (“MMC”) Group, as first reported in May 2024 (the “Transaction”).

As part of the Transaction, MHT and HCS entered into a long-term, win-win APT and tungsten oxide offtake agreement, providing a strong anchor for MHT’s order book. Masan also retains potential monetary upside from Nyobolt, a British fast-charging tungsten and niobium-based battery technology company nearing scaled commercialization, as well as future commercialization of black mass recycling technology developed by HCS.

Upon closing of the Transaction, Masan Group will report a one-time after-tax profit gain, whilst Transaction proceeds will be used to reduce MHT’s debt balance to approximately USD490 million from approximately USD670 million pre-Transaction. At the same time, Masan Group is expected to report Net Debt to EBITDA of approximately 3.17x as of December 2024, consistent with the Group’s target of maintaining the ratio below 3.5x.

Danny Le, Chief Executive Officer of Masan Group and Chairman of MHT, commented: “The sale of HCS is the first step in realigning our business platform to focus 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.”