Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Tatsuo Yasunaga) has entered into an agreement with a consortium of equity investors including APG, MEAG (Munich Re's asset manager acting for investors from within Munich Re Group), Clal Insurance Company, and other US institutional investors to sell its entire economic interest (36.5%) in the Astoria I power generation project located in New York City, New York, U.S.A. ("Project").
The Project is an IPP (Independent Power Producer) business that operates a gas-fired combined cycle power station that supplies power on a merchant basis to New York City, a premier power market in the U.S.A. Mitsui acquired ownership interests in the Project in 2013 and 2014.
This transaction will be effective after obtaining relevant regulatory approvals.
In Mitsui's business plan for the fiscal year ending March 2020 announced on April 26, 2019, Mitsui states that cash flow focused management/strengthening of the financial base continues to be one of its key initiatives. In line with the plan, this asset divestment was conducted as a part of the strategic asset recycling, and the transaction is not expected to have any significant impact on Mitsui's consolidated financial results for the year ending March 2020.
1. Outline of Astoria I power generation business
|Location||New York City, New York, U.S.A.|
|Buyer of Electricity||New York electricity wholesale market|
|Commencement of Operation||May 2006|
2. Transaction Overview
|Entity to be sold||Astoria Project Partners LLC|
|Buyer||Special purpose company established and led by APG, MEAG (Munich Re's asset manager acting for investors from within Munich Re Group), Clal Insurance Company and other US institutional investors|