Mitsubishi spends $90mn buying 10% of Vietnam's high-tech material firm
Mitsubishi spends $90mn buying 10% of Vietnam's high-tech material firm
Mitsubishi Materials Corporation (MMC) has decided to inject US$90 million into Masan High-Tech Materials (MHT) to own 10 percent, or nearly 110 million shares, in the unit of Vietnamese conglomerate Masan Group.
MMC will subscribe for the 109,915,542 newly-issued common shares via a private placement.
The two companies also signed an agreement to form a strategic alliance in the tungsten industry after the deal, MHT said in a statement sent to local media on Monday afternoon.
On completion of the transaction of the 10-percent stake, MMC will become the second-largest shareholder of MHT, according to the business-focused Nhip Cau Dau Tu magazine.
Credit Suisse will act as the exclusive financial advisor to MHT.
Masan High-Tech Materials is a leading supplier of critical minerals including tungsten, fluorspar, and bismuth.
It is currently operating a world-class polymetallic mineral resource and chemical processing plant in northern Vietnam.
Mitsubishi Materials Corporation is an integrated materials manufacturer. It meets customers’ needs by providing such basic materials as copper and cement.
MMC also manufactures and sells mechanical parts, electronic materials, and components used in automobiles, home appliances, as well as the tools used to make them. MMC is involved in recycling and energy business as well.
The Japanese company is also the first strategic investor of MHT in Vietnam since the operation and management of the Nui Phao polymetallic mineral mine started in the northern province of Thai Nguyen in 2010.
“Forging a strategic alliance with Mitsubishi Materials Corporation will certainly accelerate our vision to become an end-to-end global high-tech industrial materials platform," Craig Bradshaw, CEO of MHT, said in Monday's statement.
"Our customers will benefit the most as this partnership will strengthen our capabilities to supply quality and innovative products and solutions."
