Mitsui to Sell Its Interest in Columbia Asia Healthcare, Asian Hospital Group

LONDON--()-- 

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

September 13, 2019

For Immediate Release

To Whom It May Concern

Company Name: Mitsui & Co., Ltd.

Representative: Tatsuo Yasunaga, President & CEO

(Code No.: 8031)

Head office: 1-3, Marunouchi 1-chome, Chiyoda-ku, Tokyo

Mitsui to Sell Its Interest in Columbia Asia Healthcare, Asian Hospital Group

Mitsui & Co., Ltd. (hereinafter called “Mitsui”, President and CEO: Tatsuo Yasunaga) indirectly owns a share in International Columbia U.S. LLC (hereinafter called “ICU”), a holding company that has invested in, and controlled the hospitals and clinics of Columbia Asia Group in Malaysia, India, Indonesia and Vietnam (29 facilities in total) through its subsidiary, Columbia Asia Healthcare Pte. Ltd (hereinafter called “CAH”). Since the initial investment in Columbia Asia Group in July 2016, in collaboration with the founding family, Mitsui has enhanced the enterprise value of Columbia Asia Group through strategic initiatives such as profit maximization, growth plan development, corporate governance reinforcement and operational efficiency improvement, fully utilizing the strength of Columbia Asia Group platform to deliver high quality and efficient medical care to the respective communities. In March 2018, Mitsui acquired an additional equity stake in ICU, and has started to accelerate organizational optimization, hospital expansion, and IT system evolution.

ICU has entered into an agreement with HLT Healthcare Holdings Limited (A joint venture between Malaysian conglomerate, Hong Leong Group and the US PE fund, TPG) to separate the Indian operation (Columbia Asia Hospitals Private Limited) from CAH and subsequently divest CAH for the amount of approximately US$ 1.2 billion.

Mitsui is committed to leverage the experience and capability cultivated through the management of Columbia Asia Group, to resolve the supply-demand gap in the rapidly growing Asian healthcare market.

The expected profit relating to capital gain from this transaction is included in the business plan for the fiscal year ending March 2020, which was announced on April 26, 2019.

  1. Profile of International Columbia U.S. LLC

Head Office

Cayman Islands (Managed by U.S. entity)

Establishment

2004

Representative

Daniel. R. Baty

Shareholder

Mitsui: 26.09%, Founding family (Baty family): 26.14%, Other Investors: 47.77%

Business Activities

Holding company of Columbia Asia Group

  1. Profile of Columbia Asia Group

Company Name

Columbia Asia Healthcare Pte. Ltd.

Columbia Asia Hospitals Private Limited

Registered office

Singapore

Bangalore, India

Establishment

2018

2003

Representative

Dilip Kadambi

Dr. Nandakumar Jairam

Business Activities

Operation of clinics and hospitals

Operation of hospitals

Business Locations

(As of March 31, 2019)

A total of 17 hospitals and 1 clinic (1,400 beds in total) in Malaysia, Indonesia, and Vietnam

A total of 11 hospitals (1,200 beds in total) in India

For inquiries on this matter, please contact:

Mitsui & Co., Ltd.

IR Div. TEL: +81-3-3285-7910

Corporate Communications Div. TEL: +81-3-3285-6645

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.

For diagrams omitted, please see our web site https://www.mitsui.com/jp/en/release/2019/1229653_11219.html

Short Name: Mitsui & Co., Ltd.
Category Code: MSCH
Sequence Number: 675786
Time of Receipt (offset from UTC): 20190913T102542+0100

Contacts

Mitsui & Co Ltd

Contacts

Mitsui & Co Ltd