Mitsui : to Acquire Additional Shares of MOECO (2)
12/01/2021 | 09:11pm EST
December 2, 2021
For Immediate Release
To whom it may concern
Mitsui & Co., Ltd.
Mitsui to Acquire Additional Shares of MOECO (2)
As Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Kenichi Hori) announced to acquire an additional approximately 20% of the shares of Mitsui Oil Exploration Co., Ltd. ("MOECO") from Ministry of Economy, Trade and Industry ("METI") of Japan on the release "Mitsui to Acquire Additional Shares of MOECO" dated October 27 2021, we hereby announce the details as follows.
1. Background of Acquisition
Mitsui was successfully awarded as a selected bidder in the Public Tender of METI on October 27, 2021 regarding Sale of its MOECO shares (approx. 20%) and will enter into a Stock Purchase Agreement following the negotiation with METI. In response to the acquisition of an additional shares of MOECO, Mitsui will own approximately 94% of MOECO share.
2. Acquired Stock
（1）Number of shares owned before
（2）Number of shares acquired
（3）Total purchase prices
JPY 71.6 billion
（4）Number of shares owned after
3. Impact on financial result forecasts
Financial impact of the acquisition has not been incorporated in Mitsui's forecasts for the fiscal year ending March 31, 2022 announced on November 2, 2021 and we believe that the impact should be limited.
4. Future Strategy
Since its establishment in 1969, MOECO has been engaged in exploration, development and production of oil and gas all over the world with a focus on the project at offshore Thailand. Together with Mitsui, MOECO has built a global oil and gas portfolio which contributes to the stable supply of energy to Japan and the rest of the world.
For sustainable development of the society, the need for "Dual Challenge", which requires more and cleaner energy, is expanding around the world. In order to respond to the accelerating trend, Mitsui decided to acquire an additional share of MOECO from METI, with a view to wholly owning MOECO's share, to flexibly strengthen its business portfolio and build and strengthen a management structure for clean energy business which contributes to the next generation.
By leveraging the advanced integration of Mitsui's comprehensive strengths including global network and MOECO's knowledge such as technology for oil and gas exploration, development and production, Mitsui Group will continue to work on realization of "Create an eco-friendly society" and "Secure sustainable supply of essential products" by the expansion of geothermal power generation business, Carbon Capture Utilization and Storage("CCUS") and expanding its business domain toward low carbon hydrogen and low carbon ammonia utilizing CCUS.
This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui's current assumptions, expectations and beliefs in light of the information currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
Mitsui & Co. Ltd. published this content on 02 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 December 2021 02:10:05 UTC.