Masan Group (MSN) will buy a controlling interest in the Nui Phao mining joint venture from Tiberon Minerals Pte Ltd, a company owned by fund manager Dragon Capital, pursuant to an agreement signed on Wednesday.
The mining operation was an important national asset, with the largest deposits of tungsten in the world, accounting for 5 per cent of the global output, said Masan Group Director Michael Nguyen.
The mine also included substantial deposits of copper, flourspar and bismuth, he added.
Nguyen called the acquisition an important step in Masan's strategy to become a leading resource and infrastructure business, and he vowed that Masan would also bring its business capacity-building strengths to the mining venture.
"Our philosophy has always been about partnerships with Vietnamese companies, and Masan has the scale and skills to add very substantial value to Nui Phao," commented Dragon Capital CEO Dominic Scriven.
A Masan press release issued yesterday indicated that the transaction was subject to regulatory and other customary closing conditions.
Masan Group plans to issue 30 million additional shares before April of next year, offering 10 million of the shares to company employees at a price of VND10,000 per share.
The group projects a net profit this year of VND1.2-2 trillion (US$63-105 million) and plans to increase its charter capital to VND5.1 trillion ($268.4 million).