Mitsubishi plans $1.4 bln rescue for plant engineering firm Chiyoda - Nikkei

Chiyoda

06/05/2019 03:44

TOKYO, May 6 (Reuters) - Japanese trading house Mitsubishi
Corp  8058.T  and MUFG Bank plan to rescue plant engineering
company Chiyoda Corp  6366.T  with a $1.4 billion lifeline,
betting on a turnaround fuelled by greater LNG demand, the
Nikkei newspaper reported on Monday.
    Chiyoda, one of the world's leading builders of liquefied
natural gas (LNG) plants, has struggled with losses after a
hurricane hit its Cameron LNG project in Louisiana. 
    However, a global shift from coal is seen boosting the
demand for natural gas, and Royal Dutch Shell has forecast the
global LNG trade to rise 11 percent to 354 million tonnes this
year. Mitsubishi has said it expects such growth to also fuel a
rise in LNG projects.
    Mitsubishi, which has bailed out Chiyoda twice already and
has a 33.4 percent stake in the engineering company, will
provide the bulk of the 150 billion yen ($1.36 billion) lifeline
through a private placement of new preferred shares and loans,
the report said, without citing sources. 
    MUFG Bank, a part of Mitsubishi UFJ Financial Group
 8306.T , will provide additional financing, it said.
    Chiyoda said it was in talks, but no decision had yet been
made. It also said its full-year loss would likely be bigger
than it previously forecast.
    
    
    ($1 = 110.4900 yen)

 (Reporting by Ritsuko Ando, Editing by Sherry Jacob-Phillips)
 ((Ritsuko.Ando@reuters.com; +81 3 6441 1743; Reuters Messaging:
ritsuko.ando.thomsonreuters.com@reuters.net))