[Translation]
December 20, 2023
To whom it may concern
Company Name: ENEOS Holdings, Inc.
Representative: Miyata Tomohide Representative Director
Code number: 5020;
TSE Prime Market/
NSE Premier Market
Contact person: Eguchi Sayuri Group Manager, Investor Relations Group, Investor Relations Department (Tel.: +81-3-6257-7075)
Notice regarding transfer of partial shares in Pan Pacific Copper Co., Ltd. (change in consolidated
subsidiary (sub-subsidiary)) and partial interest of Los Pelambres Copper Mine
ENEOS Holdings, Inc. announces that its wholly-owned subsidiary, JX Metals Corporation (President: Hayashi Yoichi) and Marubeni Corporation (President: Kakinoki Masumi) today agreed that JX Metals Corporation will transfer 20% shares of Pan Pacific Copper Co., Ltd. (President: Hori Kazuhiro), of which JX Metals Corporation holds 67.8%, and 3.27% interest of Los Pelambres Copper Mine, of which JX Metals Corporation indirectly holds 15.79%, to Marubeni Corporation.
We expect no material impact from the above on our consolidated earnings for the period ending March 31, 2024.
REFERENCE
"Structural Reform of JX Metals' Base Businesses"
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December 20, 2023
JX Metals Corporation
Structural Reform of JX Metals' Base Businesses
JX Metals Corporation (President: Hayashi Yoichi; "the Company") today agreed with Marubeni Corporation
(President: Kakinoki Masumi; "Marubeni") on the transfer to Marubeni of 20% of shares in Pan Pacific Copper
Co., Ltd. (President: Hori Kazuhiro, "PPC"), in which the Company has a 67.8% shareholding, as well as 3.27%1 of the interests in the Los Pelambres Copper Mine, in which the Company has an indirect share of 15.79%.
In its mineral resources business and smelting and refining business, the Company has long partnered with Marubeni, which has a wealth of knowledge and expertise in the copper resource business, in areas including joint investment in the Los Pelambres Copper Mine and dealings with PPC, which handles raw materials procurement and sales in the Company's copper smelting and refining business. The Company positions the mineral resources business and the smelting and refining business as its "Base Businesses" that strengthen supply chains and support growth in "Focus Businesses" such as semiconductor materials. "Base Businesses" are also significant from the perspective of the realization of a sustainable society by promoting resource circulation and decarbonization. Solidifying the partnership with Marubeni through this transfer is expected to generate synergy in various areas, such as leveraging Marubeni's networks to expand the clientele and enhancing resilience in raw materials procurement. This will enable the Company's Base Businesses to become even more competitive.
In conjunction with this transfer, PPC (revenue: 1,133.2 billion yen; interest-bearing debts: 195.4 billion yen)2 is expected to switch from a consolidated subsidiary to an equity-method affiliate. As a result, consolidated revenue of Focus Businesses, which are positioned at the core of the Company's growth strategy, will increase significantly as a proportion of overall revenue, and the ratio of consolidated operating profit to revenue will also rise sharply. In addition, consolidated interest-bearing debts will reduce considerably, leading to a major improvement in the JX Metals Group's profitability and financial standing.
The Company will continue to accelerate efforts to reinforce its Base Businesses and improve its capital efficiency, as well as to promote initiatives to realize the Sustainable Copper Vision and resource circulation. At the same time, it will take proactive and flexible measures to further expand focus businesses at the core of its growth strategy and realize the JX Metals Group's long-term vision for 2040.
Notes:
- 13.06% of shares in Nippon LP Resources B.V., which has a 25% shareholding in Minera Los Pelambres.
- Results for the fiscal year ended March 31, 2023 (non-consolidated).
For reference:
1. Marubeni overview
Head office | 4-2 Ohtemachi 1-chome,Chiyoda-ku, Tokyo |
Representative | Kakinoki Masumi, President and CEO |
Capital | 263.3 billion yen |
Using the broad business networks, both within Japan and overseas, to conduct | |
importing and exporting (including third country trading), as well as domestic | |
business, encompassing a diverse range of business activities across wide-ranging | |
Main business | fields including lifestyle, IT solutions, food, agri business, forest products, chemicals, |
metals & mineral resources, energy, power, infrastructure project, aerospace & ship, | |
finance, leasing & real estate business, construction, industrial machinery & mobility, | |
next generation business development and next generation corporate development. | |
Total Assets | 7,953.6 billion yen (as of March 31, 2023 (consolidated)) |
Employees | 4,340 (Marubeni Group employees: 45,995) |
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2.Information on transfer of PPC shares
(1) PPC overview (as of December 1, 2023 unless otherwise specified)
Head office | The Okura Prestige Tower, 10-4 Toranomon 2-chome,Minato-ku, Tokyo | ||||||||
Representative | Hori Kazuhiro, Representative Director, President & Chief Executive Officer | ||||||||
Capital | 5 billion yen | ||||||||
Date of establishment | October 3, 2000 | ||||||||
Purchase of copper concentrates | |||||||||
Main business | Production, outsourcing, and sale of refined copper as well as sulfuric acid, | ||||||||
precious metals, and other by-products of copper smelting | |||||||||
Major shareholders | JX Metals Corporation 67.8%, Mitsui Mining & Smelting Co., Ltd. 32.2% | ||||||||
and shareholding ratio | |||||||||
Employees | 56 | ||||||||
PPC operating results and financial position over the last three years (unit: million yen) | |||||||||
Fiscal year ended | March 31, 2021 | March 31, 2022 | March 31,2023 | ||||||
Net assets | 65,249 | 62,804 | 82,894 | ||||||
Total assets | 356,905 | 450,992 | 517,119 | ||||||
Revenue | 783,936 | 936,044 | 1,133,238 | ||||||
Operating profit | 2,796 | 13,704 | 22,736 | ||||||
Income before income | 1,207 | 10,158 | 19,052 | ||||||
taxes | |||||||||
Net profit | 627 | 6,935 | 13,076 | ||||||
(2) Shareholdings before and after transfer | |||||||||
Pre-transfer shareholding | 8,018 shares | ||||||||
Shares to be sold | 2,365 | ||||||||
Sale price | 14.5 billion yen | ||||||||
Post-transfer shareholding | 5,653 shares (proportion of shares held: 47.8%) | ||||||||
(3) Schedule | |||||||||
Contract date | December 22, 2023 | ||||||||
Timing of share transfer | March 2024 (Planning) |
3. Information on transfer of interests in the Los Pelambres Copper Mine
(1) Los Pelambres Copper Mine overview (as of December 1, 2023)
Location | Coquimbo Region, Republic of Chile | ||
Started production | January 2000 | ||
Mineral reserves | Approx. 6 billion tons (copper grade: 0.50%) | ||
(as of December 31, 2022) | |||
Copper production | 275,000 tons / Year | ||
(2022 Results) | |||
Company Name | Before the | After the | |
transaction | transaction | ||
Antofagasta plc | 60.00% | 60.00% | |
Share of interests | the Company | 15.79% | 12.52% |
Marubeni | 9.21% | 12.48% | |
Mitsubishi Materials Corporation | 10.00% | 10.00% | |
Mitsubishi Corporation | 5.00% | 5.00% |
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(2) | Shareholdings before and after transfer (Nippon LP Resources) | ||
Pre-transfer shareholding | 25,263 shares | ||
Shares to be sold | 5,224 | ||
Post-transfer shareholding | 20,039 shares (proportion of shares held: 50.1%) | ||
Note: Sales price has not been disclosed due to contractual confidentiality obligations related to this | |||
transaction. | |||
(3) | Schedule | ||
Contract date | December 22, 2023 | ||
Timing of share transfer | March 2024(Planning) |
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Eneos Holdings Inc. published this content on 20 December 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 December 2023 08:12:08 UTC.