Mitsubishi likely made loss from Masan High-Tech Materials divestment

Mitsubishi Materials Corporation Group, an arm of Japanese conglomerate Mitsubishi, is thought to have sold off its 10% stake in Masan High-Tech Materials on Thursday morning at a loss.

Data from the Unlisted Public Company Market (UPCoM) showed that foreign investors sold a total of 109.92 million shares in Masan High-Tech Materials, coded MSR, via three put-through transactions to domestic buyers.

The shares were all sold for VND14,800 ($0.58) each, resulting in a total transaction value of VND1,626.75 billion ($63.9 million).

The number of MSR shares sold exactly matched the volume that Mitsubishi Materials registered to unload last week, from May 30 to June 10.

MSR fell into the red an hour after Thursday's open, but climbed back into the green towards the end of the session. The stock was up 5.2% to VND18,200 ($0.71) a share at 2:30 p.m.

If the MSR shares were acquired by a sole buyer, the buyer’s identity will be reported to market authorities in the coming days. However, with the volume being divided in three lots, the separate buyers may not have to report their transactions to the authorities as their holdings are below the regulatory 5%.

On October 30, 2020, Masan High-Tech Materials, a tungsten arm owned by Vietnamese private conglomerate Masan Group, announced the sale of a 10% stake to Mitsubishi Materials Corporation for $90 million, equivalent to $0.82 or VND19,054 a share.

The transaction was part of a plan between the two sides to establish a strategic alliance in the tungsten industry.

On May 14, Mitsubishi Materials and Masan High-Tech Materials announced they had reached an agreement for the former to acquire all shares of H.C. Starck Holding GmbH, a wholly owned subsidiary of the latter that produces high-quality tungsten power.

The closing of the transaction is expected by the end of March 2025 and is subject to customary corporate and regulatory approvals.

Days after this announcement, the Japanese corporation registered to sell its entire 10% stake in MSR.

Mitsubishi Materials says it aims to become “a leading company in tungsten products, recognized by customers globally”.