Mitsubishi Materials Corporation (MMC) has agreed to acquire a 10% stake in Masan High-Tech Materials Corporation (MHT) for US$90 million, making it the second largest shareholder.
The deal, which will see MMC subscribing for 109,915,542 newly issued ordinary shares of MHT via a private placement, is aimed at developing a leading, high-tech tungsten materials platform. Credit Suisse acted as exclusive financial advisor to MHT.
“The ability to offer cutting edge solutions to customers and the strategic flexibility of being integrated across the value chain is a critical factor to delivering sustainable growth and will continue to be a critical factor in the tungsten space,” Masan notes in a statement.
The company says it 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.
MHT, based in Thai Nguyen, Vietnam, believes Mitsubishi Materials will add significant value as a strategic partner, enabling the parties to develop better leading-edge solutions for end customers.
Comments MHT chief executive officer Craig Bradshaw: “I am extremely proud that we are starting to realize 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.”
Makoto Shibata, director and chief financial officer of MMC, notes: “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 a new collaboration, which our investment in MHT will create and must have a significant impact in our future.”
The deal is subject to regulatory as well as MHT shareholders’ approvals.