REG-Mitsui & Co Ltd Mitsui to Sell Its Interest in OSIsoft (United States)

Mitsui & CoAnnouncement

25/08/2020 09:15

Mitsui to Sell Its Interest in OSIsoft (United States)

 

This announcement is for our U.S.$5,000,000,000 Euro Medium Term Note Programme.

August 25, 2020

For Immediate Release

To whom it may concern

Mitsui & Co., Ltd.

Mitsui to Sell Its Interest in OSIsoft (United States)

Mitsui & Co., Ltd. (“Mitsui,” Head Office: Tokyo, President and CEO: Tatsuo Yasunaga) acquired a 5% shareholding in OSIsoft LLC. (“OSI”) in March 2016. Mitsui has since supported the take-up of PI Systems developed and expanded by OSI through Mitsui’s offices and branches around the world in accordance with a memorandum of understanding concerning a strategic alliance. Mitsui has also driven the establishment of IoT solutions powered by data utilization, productivity enhancements through the use of digital technology, and business model innovation, which realized operational improvements of its global group companies along with other results.

Mitsui, together with other shareholders, recently agreed to sell its entire shareholding in OSI to AVEVA Group plc, and concluded a share transfer agreement. The sale is expected to be completed around the end of 2020, after the necessary approvals have been obtained. The agreement was based on a corporate value of USD 5 billion (equivalent to 525 billion yen) for OSI. The sale price for Mitsui’s equity will be USD 250 million (equivalent to 26 billion yen). The expected profit from this transaction has not been reflected in Mitsui’s profit plan for the fiscal year ending March 2021.

In its Medium-term Management Plan 2023, Mitsui states that it will evolve portfolio management as its corporate strategy. This sale was executed as a part of its strategic asset recycling. Mitsui will continue to collaborate with OSI after the sale of its shareholding, primarily through support for sales of the PI System in Japan and overseas. The digitalization of industry is expected to accelerate. Mitsui will continue to create value through digital transformation, including the development of solutions based on the effective use of data, and the support for the frontline introduction and operation of those solutions.

1. Profile of OSIsoft LLC.



Location



California, U.S.A.





Established



1980





Representative



J. Patrick Kennedy





Shareholders



Founder, SoftBank Vision Fund 1, Mitsui





Outline of business



Development and sale of the PI System, IoT data management software




2. Profile of AVEVA Group plc (Buyer)



Head office



Cambridge, United Kingdom





Representative



Craig Hayman





Business activities



Provision of engineering software and solutions that contribute to productivity improvements in industrial plants, the electric power sector, and shipbuilding operations





URL



https://www.aveva.com/




For further information, please contact: 

Mitsui & Co., Ltd.



Investor Relations Division         



Tel: +81-3-3285-7657





Corporate Communications Division



Tel: +81-80-6627-8452




Notice:

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.
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