Masan submits offer for remaining stake in Nui Phao mine owner

November 01, 2016 | 19:39

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Masan Group Corporation (MSN) has announced its plan to buy a 27.3 per cent stake and become the full owner of Masan Resources Corporation (MSR), owner of Nui Phao Mining Company, according to newswire Dantri.

MSN currently holds 72.7 per cent of MSR and MRC Ltd.-an investment fund co-managed by Fortress Invesment Group and Moubt Kellett Capital-holds 20.04 per cent as the second largest shareholder. The remaining stake is owned by small shareholders.

MRC Ltd. plans to sell its entire holding in MSR to MSN to collect capital for its restructuring plans.

MSN offers VND15,500 ($0.68) for each MSR share. The purchase, which will be carry out through its subsidiary Masan Horizon Corporation (MH), is expected to be completed this year.

In order to arrange capital for the purchase, MSN will borrow $35 million from MRC Ltd. In addition, MSN will issue 12 million shares at the price of VND95,000 ($4.2) apiece. If successful, MSN will acquire VND1.14 trillion ($50.4 million).

Nui Phao mine was licensed in 2005 and has the world’s second largest deposits of tungsten outside China, as well as fluorspar, bismuth, and copper. It covers an area of 9.21 square kilometres in Dai Tu district, Thai Nguyen province.

The mine was 70 per cent owned by Canadian Tiberon Minerals Ltd.. Due to the economic crisis at the time, Tiberon sold the project to Dragon Capital, a Vietnam-focused financial institution, and other stakeholders in 2007. Dragon also lacked to operate the project and was forced to suspend it in 2008.

In 2010, MSR acquired the 70 per cent stake in the project from Dragon Capital. Currentoy, MSR holds 72.7 per cent.

MSN is one of Vietnam’s largest private sector business groups, focusing on the consumption and resources sectors.

In consumption alone, MSN established Masan Consumer Holdings as the primary platform to further exploit opportunities in Vietnam. Its core holdings include Masan Consumer and Masan Brewery.

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