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On May 20, 2013, Mitsui & Co., Ltd. ("Mitsui"; Head Office: Chiyoda-ku, Tokyo, President and CEO: Masami Iijima) has acquired, through a Mitsui subsidiary, a 19.99% ownership stake in Medini Iskandar Malaysia Sdn Berhad ("MIM"; Head office: Malaysia), a company engaged in urban development of the Medini district in Johor State, Malaysia.
Through its wholly-owned holding company (hereinafter, "Mitsui Subsidiary"), Mitsui acquired a 14.99% stake of MIM shareholdings from Iskandar Investment Berhad ("IIB"; Head Office: Malaysia; 60% of IIB shares held by Malaysian government-owned strategic investment fund, Khazanah Nasional Berhad) which owns 75% of MIM, and acquired an additional 5% stake of MIM shareholdings from United World Infrastructure LLC("UWI"; Head Office: United States of America), an urban development company which owns 25% of MIM.
MIM engages in land development in the Medini district, occupying a tract in the Iskandar Project, a project led by the Malaysian government since 2006. MIM owns approximately 132 hectares (roughly 28 times the size of the Tokyo Dome) of the Medini district which covers approximately 908 hectares (roughly the land area of Chuo Ward, Tokyo, which is about 1,009ha).The Iskandar Project region itself is approximately 220,000 hectares (about the size of the City of Tokyo, which is 219,000 ha).
MIM undertakes the land development, sales and leasing, as well as infrastructure building and potential operations of the Medini district owned by the company, and is committed to developing attractive urban areas in the district.
Speaking of the urban development, it has already begun in the Medini zone, with the tract now hosting LEGOLAND Malaysia, Southeast Asia's first LEGOLAND theme park. The Iskandar region is attracting a great deal of interest in terms of prospects for future development, given its location adjacent to Singapore which is situated in the center of the rapidly growing Southeast Asian region. Moreover, in line with its plans to achieve sustainable economic development of the Medini zone, MIM is setting out to create new service ventures as it works toward developing infrastructure incorporating environmentally-oriented smart technologies.
Mitsui has for some time been considering company-wide and cross-divisional opportunities in the smart city realm, such that could effectively enhance environmental sustainability and energy efficiency in emerging countries. As a result, Mitsui decided to tackle the development of a smart city using multi-layered and integrated approaches, involving operations spanning urban and land development, infrastructure improvement as well as services for implementing smart technologies and to acquire a stake in MIM, the master developer in the Medini zone, as a business platform to actually implement our venture.
The decision to acquire ownership interest in a master developer has been geared toward enabling our expansion in the infrastructure projects and township management businesses, targeted at establishing a platform that will lead to the advancement of the utilization of smart technology. In turn, this fits in with our aim of launching a new type of brand in the realm of urban development targeting the creation of comfortable, convenient and safe smart cities, while bringing on board exceptional technologies and services centering mainly on Japanese firms.
Through the new relationship with MIM, we will be pursuing new business models in the realm of smart city development, which may bring about a sustainable and low carbon society that offers highly convenient lives for residents. This plan of action is in line with the key strategy espoused by Mitsui's Medium-term Business Plan of developing new businesses that enhance environmental sustainability, and also involves one of the plan's key sectors, that of the real estate business in Asia.
This undertaking entailing our investment in MIM marks the second "business innovation project" to be undertaken under Mitsui's new framework to pursue business innovation established in October 2012. Under the framework, business innovation projects are defined as business endeavors newly set up with the aim of creating business for the next generation; projects, despite the unpredictable factors of uncertainty, that are deemed to generate profit from a long-term perspective. Therefore, the new framework enables the business units to pursue relevant long-term business opportunities, without being subject to some of the criteria for investment and certain exit benchmarks stipulated in Mitsui's regulations. Accordingly, our investment in MIM takes place under the business innovation project designation, given that it involves long-term and extensive urban development slated for the next 20 years and that it also constitutes an innovative venture poised to embody the ideal of a next-generation city.
On a separate note, Mitsui and Khazanah Nasional Berhad, have been working together in the hospital business centering on the Asian region through a joint investment in IHH Healthcare Berhad.
|Company||Medini Iskandar Malaysia Sdn Berhad|
|Head Office||Johor Bahru, Malaysia|
|Managing Director & CEO||Mr. Khairil Anwar Ahmad|
|Business||Land development, sales and leasing and infrastructure building and operations in the Medini district located in the state of Johor, Malaysia.|
(After transfer of shareholdings)
Mitsui Subsidiary: 19.99%
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.