LONDON--(BUSINESS WIRE)--
This announcement is for our U.S. $5,000,000,000 Euro Medium Term Note Programme
Mitsui & Co., Ltd.
Additional Investment in Brazilian Agricultural Production and Grain Distribution Business, Multigrain AG
Mitsui & Co., Ltd. (“Mitsui”, head office: Tokyo, President and CEO: Masami Iijima) has agreed to acquire 44.2% (voting rights: 45.1%) of the outstanding shares of Multigrain AG (”MAG”, head office: Switzerland) owned by CHS Inc. (“CHS”, head office: USA, listed on NASDAQ) through its subsidiary CHSIH SA (“CHSIH”, head office: Switzerland). MAG engages in the agricultural production business and the grain distribution business (origination, processing, logistics, export and marketing) in Brazil. With this acquisition, Mitsui’s shareholdings in MAG will increase from 44.2% (voting rights: 45.1%) to 88.4% (voting rights: 90.1%), making MAG Mitsui’s consolidated subsidiary. Mitsui’s additional investment is US$225 million, with total investment of US$459 million.
Mitsui will strive to strengthen agricultural production and grain distribution business in Brazil, which has high potentiality of food supply, and to secure a stable supply of grain from Brazil mainly to Asian market, through MAG as a major subsidiary in Mitsui’s grain business.
The global demand for grain is expected to increase as world population grows and as the economy in the emerging countries continues to improve. Mitsui will strive to strengthen its grain business as one of its core business areas, aiming to respond to the global demand for food and ensure food safety and security.
1. Change in Mitsui’s Shareholdings in MAG
| Shares | Holding ratio | Voting rights ratio |
Total amount
paid by Mitsui |
||||||
|
Before the additional
investment |
6,431,573 | 44.2% | 45.1% | ||||||
| Additional investment | 6,431,573 | 44.2% | 45.1% | US$ 225 million | |||||
|
After the additional
investment |
12,863,146 | 88.4% | 90.1% |
2. Date of Acquisition of Shares
This transaction will be completed upon approval from the Japanese, Brazilian and other authorities
3. Outline of MAG
| Corporate name | Multigrain AG | |
| Head office location | Switzerland | |
| Representative | Nobuhiko Tomishima (Chairman of the board) | |
| Business | Own the 100% subsidiary Multigrain S.A. as its operating company in Brazil, engaged in the origination, processing, export and marketing of soybeans, corn and cotton, and import of wheat in Brazil. Through its 100% subsidiary Xingu AG, also owns Agricola Xingu S.A., which is involved in growing soybeans, corn and cotton, and in cotton ginning (producing ginned cotton from raw cotton), etc. in Brazil. | |
| Amount of capital | 145,485,000 Swiss Franc (as of March 31, 2010) | |
| Established | 2006 | |
|
Major shareholders
(Before the additional investment) |
CHSIH 44.2%、Mitsui 44.2% | |
|
Relationship with
Mitsui (Before the additional investment) |
Capital: Mitsui’s shares of ownership in MAG are 6,431,573 shares
(holding ratio: 44.2%)
Personnel: 3 Directors (total members are 7) and 4 seconded employees as of date Business : Trading of grains such as soybeans |
MAG’s Consolidated Operating Results and Financial Condition (IFRS):
(Thousands of US$)
| Fiscal year | Year ended December | ||||||
| 2007 | 2008 | 2009 | |||||
| Shareholders’ equity | 269,763 | 495,109 | 548,921 | ||||
| Total assets | 830,597 | 1,060,422 | 1,285,195 | ||||
| Sales | 514,541 | 985,407 | 1,254,279 | ||||
| Gross profit | 17,351 | 14,057 | 22,815 | ||||
| Net Income | 10,700 | 1,881 | -11,619 | ||||
4. Outline of CHS and CHSIH
| Corporate name | CHS Inc. | |
| Head office location | Minnesota, USA | |
| Representative | Carl Casale, CEO | |
| Business | A major grains and foods and energy company listed on NASDAQ. Operations include grain origination and export, and oil refining and sales. | |
| Established | 1936 | |
| Shareholders’ equity | US$ 3,335,664,000 (as of the end of August 2010) | |
| Total assets | US$ 8,666,128,000 (as of the end of August 2010) |
| Corporate name | CHSIH SA | ||
| Head office location | Switzerland | ||
| Representative | Claudio Scarrozza, President | ||
| Business | Investments in overseas J/V | ||
| Established | 2006 |
5. Forecast
As a result of this additional investment, the forecast of Mitsui’s consolidated financial results of the fiscal year ending March 2011 will not be changed. This transaction is expected to have only a negligible impact on Mitsui’s consolidated financial results of fiscal year ending March 2011.
For further information, please contact:
Mitsui & Co., Ltd.
Investor Relations Division Corporate Communications Division
Telephone: +81-3-3285-7910 Telephone: +81-3-3285-7618
Notice: This press release includes forward-looking statements about Mitsui. These forward-looking statements are based on the current assumptions and beliefs of Mitsui in light of the information currently available to it, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. The risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui’s latest annual report on Form 20-F, which has been filed with the U.S. Securities and Exchange Commission.
This press release is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.
For diagrams omitted, please see our home page. (http://www.mitsui.co.jp/en/release/2011/1190971_4048.html)