Masan Resources has acquired a 49% stake from H.C.Starck (HCS) through its subsidiary Nui Phao Mining Company (NPMC) in a deal worth US$29.1 million to fully own Nui Phao - H.C.Starck Tungsten Chemicals Manufacturing (NHTCM), according to the company's press release.
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NHTCM is a globally recognized brand and trusted supplier for many high-tech industrial manufacturers, it claims.
"This acquisition is a critical step to deliver our vision of becoming a fully integrated downstream tungsten chemicals business of global scale and influence," said Craig Bradshaw, CEO of Masan Resources.
"Today, we are the number one primary tungsten concentrate producer Ex-China, with 36% of the non-China market, and we have clear operational plans to become the largest producer and supplier of tungsten chemicals globally," he added.
According to Karlheinz Reichert, CEO of HCS Tungsten Division, the company remains contractually and personally associated with NPMC as a long term customer of choice for supply of its high quality, value added tungsten chemicals - APT, BTO and YTO.
From the financial perspective, this transaction will enable Masan Group to consolidate its's cash position by eliminating minority interests, said Danny Le, head of Strategy Development of Masan Group.
After concluding the deal, the combined business is expected to yield an improvement in NPCM's after-tax profit post minority interest of 5% in the second quarter of 2018 compared to the previous one, resulting in achieving the expected after-tax profit post minority interest of over VND1 trillion (US$42.6 million) in 2018.
