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- Mitsui & Co., Ltd.
Corporate Communications Division
Further to our announcement of 29 March 2007, Mitsui & Co., Ltd. is pleased to announce the completion of combining of the ownership of UK power generating assets with International Power plc ("IPR") on 20 June 2007 (London time).
1. The outline of the combining of power generating assets is as follows;
1-1. Mitsui sold, to IPR, 5% ownership of 2 UK assets which were jointly owned through IPM Eagle between Mitsui and IPR
1-2. Mitsui purchased, from IPR, 25% ownership of 3 UK assets which were solely owned by IPR
1-3. Mitsui and IPR completed the combination of the fuel purchase and power sales companies.
1-4. IPM (UK) Power Holdings Limited was newly established between Mitsui (25%) and IPR (75%) and it acquired those UK generating assets
Outlines of 5 UK generating assets
Please scroll horizontally to look at table below.
|Name of Power
* Ownership in Derwent Cogeneration Limited, held jointly by International Power and Mitsui in UK, will be unchanged as a result of this transaction.
2. The contract includes the partial transfer to IPR of the economic interest obtained from the operation of Paiton coal fired power plant in Indonesia. This transaction results in reallocation of rights between Mitsui and IPR to receive revenues from Paiton IPM interest, but does not entail any transfer of shares or any change of management structure.
3. The transaction involves the payment of 85 million Pounds (approx. 20 billion yen) to IPR, resulting in Mitsui's increase of 258 MW in generating capacity.
Previously, IPM and IPR owned generation assets individually, but with this transaction we expect to enhance the efficiency and optimize the management of the combined assets. The Company became a major power generator in the UK power market with approximately 5,000 MW of capacity, diversified into multi fuel sources and power units, with the capability to provide flexibility and variety in the operation and management. Through this arrangement, Mitsui intends to strengthen its relationship with IPR, and will endeavor to increase the value of the acquired assets.
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.