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Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Tatsuo Yasunaga) and the Development Bank of Japan Inc. ("DBJ") have jointly acquired shares in FKS Food & Agri Pte Ltd. ("FKSFA"), an integrated food enterprise that operates in Southeast Asia, mainly Indonesia, by subscribing for a third-party allocation of new shares for a total investment of approximately ¥11.4 billion (equity stake of 8.5%). The acquisition of shares was completed through a special purpose company, MDF Co., Ltd. (Mitsui: 60%, DBJ: 40%).
Mitsui, under its Medium-term Management Plan, has identified “Nutrition & Agriculture”, in other words, food and agriculture, as a new growth area. In the food sector, Southeast Asia is seen as an especially important market for its large population and high reliance on imported food resources, and Mitsui will further step up its efforts on initiatives designed to enhance added value to foods. Indonesia in particular offers excellent market growth potential given its economic growth and the resulting expansion of the middle-class population. Mitsui’s Food Business Unit views Indonesia as a market that should be targeted for business expansion in the area of food processing, which is expected to yield high-added value and substantial earnings.
By utilizing the "Special Investment Operations", DBJ decided to supply growth capital to support enhancement of competitiveness of Mitsui as well as Japanese industry.
FKSFA is engaged in a diverse range of business in Indonesia and across Southeast Asia, including grain importing and sales, port facility operations, sugar and flour manufacturing, and the starch business. These activities align well with the business areas in which the Mitsui & Co. group has been working for many years in Japan. While maximizing its business operations in grain producing areas, Mitsui aims to build a stable earnings base across the entire supply chain from producing areas to consumption markets. In collaboration with FKSFA, Japanese-capital companies, and others, Mitsui will work towards business expansion in Southeast Asia, including Indonesia, with an eye on new initiatives in the food processing industry in these countries.
|Name of Company||FKS Food & Agri Pte Ltd|
|Establishment||July 11, 2016|
|Employees||Approx. 3,000 (group total)|
|Equity||USD 451 million (as of December 31, 2017)|
|Shareholders||FKS International (founding family): 82.9%
|Business Activities||Integrated food business in Southeast Asia, mainly Indonesia|