The Elmet Group agrees to buy Masan tungsten stake for US$124.75M

The Elmet Group Co. NASDAQELMT said Wednesday it agreed to pay US$124.75 million for 4.99 per cent of Vietnam's Masan High-Tech Materials Corporation, alongside tungsten supply agreements. The price is about 20 per cent of Elmet's US$626.86 million market value at Wednesday's 4 p.m. EDT Nasdaq close, according to the NASDAQELMT quote page.

Elmet shares fell 1.15 per cent to US$20.58 at the 4 p.m. EDT Nasdaq close on Wednesday, according to the NASDAQELMT quote page. The company release was issued at 9:18 p.m. EDT, so that close came before the announcement.

The investment would give Elmet one seat on Masan's board. Under the commercial agreements, Masan would supply tungsten mined at its Nui Phao operation and provide conversion services at its refinery in Vietnam.

The share purchase needs regulatory and corporate approvals, and Elmet expects it to close in the third quarter of 2026. The supply agreements take effect only when that purchase closes, leaving both the equity stake and the new supply arrangements conditional.

Elmet makes tungsten components for aerospace, defense and semiconductor customers. The newly announced contracts would carry mined tungsten through conversion at Masan's Vietnamese refinery before Elmet turns the material into finished components. Elmet said the companies may pursue higher refining throughput and new products, but it gave no capacity target or spending plan.

The announcement says the supply arrangements will run for multiple years but gives no annual tonnage, contract price or minimum purchase commitment. It does not say how many Masan shares Elmet will buy, the price per share or who is selling them. Without a named seller, holders cannot tell whether the purchase payment would go to Masan itself or to an existing shareholder. The release also leaves the effect on Masan's outstanding share count undetermined.

"The Elmet Group has spent twelve years inside our supply chain," Masan chairman Danny Le said in the release.

Masan reported on May 13 that its controlling shareholder held 92.89 per cent after an earlier share placement, while its public float stood at 7.11 per cent. Elmet's release does not link its proposed purchase to that earlier sale, so those ownership figures do not establish how the new transaction will change Masan's float.

Elmet said it would also support Masan's planned move to the Ho Chi Minh Stock Exchange and its evaluation of an international listing. Masan's May update put its intended exchange transfer in 2027; the new agreement sets no listing date and gives Elmet no stated obligation to finance that move.

Elmet expects to complete the Masan stake purchase by Sept. 30, subject to the required approvals.