Key Developments For MITSUI & CO., LTD.
MITSUI & CO., LTD. (MITSY.O) (Nasdaq)
Energy XXI Executes Conditional Purchase/Sale Agreement To Acquire Certain Gulf of Mexico Shelf Oil And Natural Gas Interests From MitEnergy Upstream LLC, A Subsidiary Of Mitsui & Co., Ltd.
Energy XXI announced it has executed a conditional purchase/sale agreement to acquire certain Gulf of Mexico shelf oil and natural gas interests from MitEnergy Upstream LLC, a subsidiary of Mitsui & Co., Ltd., for a headline cash consideration of $283 million. The properties include 30 fields currently producing 8,000 net barrels of oil equivalent (BOE) per day, about 77% of which is oil and 80% of which is already operated by Energy XXI. Upon restoration of volumes pending repair of third party pipelines damaged by hurricanes in 2008, net production is expected to reach 10,000 BOE per day. Offshore leases included in the purchase total nearly 33,000 net acres. Concurrent with the signing of the agreement, Energy XXI has purchased puts and put spreads that provide downside price protection averaging $73.46 per barrel on 6,500 barrels per day of oil production for 18 months, from January 2010 through June 2011. The transaction is likely to be funded through a combination of new equity, cash on hand and bank debt. Energy XXI has placed a 5% cash deposit into escrow under the terms of the agreement. The purchase is subject to customary closing conditions and adjustments, such as downward adjustments to the purchase price to reflect revenues generated between the effective date of July 1, 2009 and the closing, which is expected within 90 days.
Mori Seiki Co., Ltd. to Establish Joint Venture with Mitsui & Co. Ltd and Gildemeister AG
Mori Seiki Co., Ltd. announced that it has decided to establish a Germany-based joint venture to be called MG Finance GmbH, which will be engaged in the customer finance support and second-hand business, with Mitsui & Co. Ltd and Gildemeister AG, effective January 2010. Mitsui & Co. Ltd, Mori Seiki and Gildemeister AG will hold 34%, 33% and 33% stakes in MG Finance, respectively.
Uranium Equities Limited Grants Mitsui & Co. Ltd An Option To Invest In Nabarlek Project
Uranium Equities Limited announced that Mitsui & Co. Ltd (Mitsui) has been granted an option to invest in the strategic Nabarlek Project. Under the terms of the agreement Mitsui, upon payment of a AUD2 million option fee, shall have the right, until the end of July 2010, to purchase a stake in the Nabarlek Project situated in the world class Alligator Rivers Uranium Field. During the term of the option the option fee will be applied towards exploration and rehabilitation activities on the Nabarlek Project. If Mitsui elects to exercise the option it will have the right to purchase, from the company, a 25% interest in the Nabarlek Mineral Lease (UEQ 100%); and a 9% interest in the West Arnhem Land Joint Venture (WALJV) with Cameco Australia (the company 40%, Cameco 60%). Consideration for the purchase will be $15 million or a value determined by an agreed valuation model, whichever is the greater.
Mitsui & Co., Ltd. Raises Full-year Consolidated Outlook for FY Ending March 2010
Mitsui & Co., Ltd. announced that it has affirmed its full-year consolidated outlook for revenue of JPY 11,500,000 million and net profit of JPY 120,000 million, as well as raised its full-year consolidated outlook for operating profit from JPY 95,000,000 million to JPY 140,000,000 million, for the fiscal year ending March 2010. According to Reuters Estimates, analysts on average are expecting the Company to report full-year revenue of JPY 11,500,000 million and net profit of JPY 150,000 million.
Mitsui & Co., Ltd. Forms Business Alliance with Yuntianhua Group-Jiji Press
Jiji Press reported that Mitsui & Co., Ltd. has formed a business alliance with Yuntianhua Group, which is engaged in manufacturing phosphoric acid fertilizer in Kunming, China.
