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Mitsui to Acquire PT Champion Pacific Indonesia—Indonesian Manufacturer of Flexible Packaging for Pharmaceutical Products

Jun. 23, 2016


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Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Tatsuo Yasunaga) and Fujimori Kogyo Co., Ltd. ("Fujimori Kogyo", Head Office: Tokyo, President: Eishi Fuyama) have decided to jointly acquire PT Champion Pacific Indonesia Tbk ("PT Champion Indonesia"), a company listed on the Indonesian stock exchange, and have entered into a share transfer agreement and other related contracts.

Mitsui and Fujimori Kogyo will first acquire all of the shares of PT Kingsford Holdings ("Kingsford"), which owns 79.42% of PT Champion Indonesia Shares. Kingsford will then make a tender offer for 20.58% of PT Champion Indonesia shares owned by minority shareholders. Kingsford will finance the tender offer through a capital infusion implemented by Mitsui and Fujimori Kogyo, which will ultimately invest oround  ¥7 billion* in total, and have equity share ratios of 40% and 60%, respectively.

Founded in 1975, PT Champion Indonesia supplies pharmaceutical packaging materials to a wide range of pharmaceutical manufacturers in Indonesia. Its track record as a supplier to major Indonesian drug companies spans more than 30 years. The company's advanced technology has also enabled it to build relationships with pharmaceutical manufacturers in other Southeast Asian countries. They have sales of US$50 million (approximately ¥5.3 billion).

The pharmaceutical market in Indonesia is expected to show high growth because of population growth and economic development, combined with the introduction of a new public health insurance system. Fujimori Kogyo has designing and development capabilities in the area of flexible packaging for pharmaceutical products, while Mitsui & Co. has a customer base of medical professionals in Asia and Oceania. By integrating these resources with the business base of the Indonesian company,  Mitsui and Fujimori will gain amplified capabilities to expand the existing business of PT Champion Indonesia, and also to develop a variety of new business.

Mitsui & Co. has been engaged in sales of packaging materials for many years, especially in Asia. By participating in the pharmaceutical packaging material manufacturing business in the rapidly expanding Indonesian market, Mitsui aims to achieve improvement in both the quality and productivity of pharmaceutical packaging materials and contribute to the advancement of health care in Indonesia.

*The amount includes the purchase price to acquire minority interests in PT Avesta Continental and PT Indogravure, a subsidiaries of PT Champion Pacific Indonesia.

1. Profile of Company to be Acquired

Company name PT Champion Pacific Indonesia Tbk
Location Kota Bekasi, Java, Indonesia
Established October 30, 1975
Name and title of representative Antonius Muhartoyo, President Director
Employees 689
Capital IDR48,610,225,000 (Approx. ¥400 million)
Shareholdings PT. Kingsford Holdings: 79.42%, PT Kalbe Farma: 5%
Business activities Manufacturer and sale of flexible packaging materials, especially for pharmaceutical products

2. Investment Ratio

Fujimori Kogyo : 60%
Mitsui : 40%

3. Mitsui's Investment Amount

US$ 26 million (Approx. ¥2.8billion)

4. Share Ownership Structure

Share Ownership Structure

PT Champion Pacific Indonesia's Packaging Products

PT Champion Pacific Indonesia's Packaging Products

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
Ayako Tatsumi
Telephone: +81-3-3285-7562
Facsimile: +81-3-3285-9819