Masan Pumps an Additional VND 510 Billion into Sherpa to Acquire Lithium-ion Battery Maker

The Board of Directors of Masan Group Corporation (stock code: MSN) has approved an additional capital contribution of up to VND 510 billion to the charter capital of The Sherpa LLC to acquire shares of Nyobolt Limited (Nyobolt). The additional capital will be contributed by Masan Group in the form of cash injection into The Sherpa.

The Board of Directors has authorized Mr. Nguyen Dang Quang, Chairman of the Board, or Mr. Danny Le, CEO, to decide on the specific amount and timing of the capital contribution, along with any other related matters.

Nyobolt is a UK-based company specializing in providing fast-charging lithium-ion battery solutions. Masan High Tech Materials (stock code: MSR), the company investing in and operating the Nui Phao project, currently holds 21.5% of Nyobolt, with a book value of VND 1,439 billion.

Masan High Tech Materials acquired its stake in Nyobolt in July 2022 when H.C. Starck Tungsten GmbH (HCS), an indirect subsidiary of MSR, invested £45 million (EUR 52 million) to purchase a 15% ownership interest in Nyobolt on a fully diluted basis. This was the largest investment in Nyobolt’s Series B funding round.

The collaboration is expected to boost HCS’s vision of becoming a leading supplier of high-tech industrial materials. At the time, the company was in the process of commercializing its products.

HCS’s high-tech tungsten materials are used in the anode coating of Nyobolt’s lithium-ion batteries, resulting in record-high power and ultra-fast charging capabilities. This technology is the culmination of a decade-long research initiative on fast-charging lithium-ion batteries, led by Professor Clare Grey, a renowned battery scientist at the University of Cambridge.

Nyobolt’s target customers include manufacturers of industrial electric vehicles requiring high power, robotics, consumer goods, cordless tools, energy storage systems, and mobile fast charging.

In July 2023, Nyobolt successfully launched an electric vehicle concept with a charging time of just 6 minutes and signed letters of intent with two major commercial customers.

In May 2024, MSR reached a framework agreement for the sale of 100% of its stake in H.C. Starck Holding, the owner of H.C. Starck Tungsten GmbH. Notably, Masan will retain its ownership stake in Nyobolt and maintain the privilege of profiting from the potential commercialization of black mass recycling technology developed by HCS.

According to Masan, the proceeds from the transaction are expected to reduce MHT’s debt and contribute to the goal of reducing net debt/EBITDA to ≤ 3.5x. This deal is anticipated to generate a one-off profit of approximately USD 40 million for Masan, with additional long-term benefits of USD 20-30 million in net profit after tax.

As of September 30, 2024, The Sherpa, with its primary business of investment management consulting, is wholly owned by Masan Group.

In 2023, Masan made two additional capital contributions to The Sherpa, totaling VND 5,400 billion, bringing its charter capital to VND 13,231 billion.

The Sherpa was established in June 2020, along with The CrownX, to finalize the “merger transaction” between VCM Services and Trading Development JSC (VCM, now Wincommerce) and Masan Consumer Holdings LLC.

In the same year, Masan transferred its entire ownership interest in Masan Consumer Holdings to The CrownX and its entire ownership interest in Wincommerce to The Sherpa. Subsequently, The Sherpa transferred its entire interest in Wincommerce to The CrownX. As a result, The Sherpa holds a 70% stake in The CrownX.

Presently, The CrownX is a pivotal player in Masan’s strategy to build a consumer-retail platform. The CrownX owns Masan Consumer Holdings and Wincommerce, along with two crucial pieces: Phúc Long and the Wintel telecommunications network.