Main

Mitsui to Subscribe for Share of MODEC thorough Third Party Allotment

Apr. 7, 2014


Main Contents

Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President & CEO: Masami Iijima) announced today that it has decided to subscribe for shares of MODEC, Inc, ("MODEC") through a third party allotment to be conducted by MODEC in parallel with the issuance of new shares thorough public offering.

1. Outline of Subscription for Shares in the Third Party Allotment

(1) Class and number of shares to be subscribed 1,429,800 shares of common stock
(2) Price of subscription The same price as public offering
(3) Payment date Any date during April 22, 2014 to April 24, 2014

2. Purpose of Subscription for shares in the Third Party Allotment

Mitsui is the second largest shareholder in MODEC, representing 14.99% of the total outstanding shares as of December 31, 2013. Mitsui and MODEC have entered into a business alliance agreement since February 26, 2010 mainly for the development of long term charter business of FPSO (*).
Since development and production activities of offshore oil and gas fields especially in Brazil and the West African coast in deep sea areas are expected to continue to increase in the future, Mitsui believes it is important to enhance its cooperative relationship with MODEC in order to expand its business in these fields.

(*) FPSO : Floating Production, Storage & Offloading System

3. Outline of MODEC

As of December 31, 2013

Please scroll horizontally to look at table below.

(1) Corporate Name MODEC Inc.
(2) Address 3-10 Nihonbashi 2-chome, Chuo-ku, Tokyo
(3) Representative Toshiro Miyazaki, President & Chief Executive Officer
(4) Main Business Engineering, construction, installation, sale, charter and operation of floating production systems such as Floating Production, Storage and Offloading systems (FPSO)
(5) Amount of Capital 20,185 million yen
(6) Establishment June 1, 1987
(7) Number of Shares Outstanding 46,408,000 shares
(8) End of fiscal year December 31
(9) Number of Employees 2,580 (including 548 contract employees)
(10) Main Banks Main Banks Sumitomo Mitsui Banking Corporation
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Norinchukin Bank
(11) Major Shareholders Mitsui Engineering & Shipbuilding Co., Ltd. 50.10%
MITSUI & CO., LTD. 14.99%
The Master Trust Bank of Japan, Ltd.
(Trust Account)
1.62%
Japan Trustee Services Bank, Ltd.
(Trust Account)
1.25%
Pictet and Cie (Europe) S.A. 1.24%
State Street Bank and Trust Company 505103 1.17%
Evergreen 1.16%
JP Morgan Chase Bank 385166 0.61%
SBI SECURITIES Co.,Ltd. 0.54%
The Nomura Trust and Banking Co., Ltd. 0.54%
(12) Relationship between Mitsui and MODEC Capital Relationship Mitsui holds 6,957,500 shares (14.99%) of MODEC.
Personnel Relationship Mitsui is currently dispatching 1 director and 4 employees to MODEC.
Business Relationship Cooperate to develop the FPSO Project and have the Business alliance agreement since February 26, 2010
(13) Financial Highlights (Consolidated)
Fiscal year As of
December 31, 2011
As of
December 31, 2012
As of
December 31, 2013
Net Assets
(million yen)
52,230 60,389 80,444
Total Assets
(million yen)
124,130 154,104 215,674
Net Assets per Share
(yen)
1,020.40 1,165.89 1,525.86
Sales
(million yen)
129,968 186,891 254,401
Operating Income
(million yen)
293 3,470 3,704
Ordinary Income
(million yen)
5,055 9,296 15,820
Net Income
(million yen)
3,067 5,130 4,922
Net Income per Share
(yen)
66.11 110.56 106.07
Dividend per Share
(interim dividend per share)
(yen)
25.00
(12.50)
27.50
(13.75)
30.00
(15.00)

Notice:
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.
This announcement 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.

Information

For inquiries on this matter, please contact

Mitsui & Co., Ltd.
Corporate Communications Division
Yuki Sugiyama
Telephone: +81-3-3285-7596
Facsimile: +81-3-3285-9819