Mitsui to Sell Entire Stake in Solar, Wind Project in Canada

Tokyo-headquartered Mitsui has 30 percent stake in this project through its investment company MIT Renewable Inc.

Mitsui & Co. Ltd, an arm of Japanese Mitsui Group, has signed a pact with Axium Infrastructure (Axium) in order to sell its entire shareholding in a Canadian project (i.e. C2C Power LP), having 679 MW of installed capacity.

The asset divestment move came from Mitsui in line with its strategic asset recycling. The company is also expected to incorporate the capital gain from this transaction largely in its business plan for the current year.

Tokyo-headquartered Mitsui has 30 percent stake in this project through its investment company MIT Renewable Inc.

The C2C Power’s wind and solar power generation business is located on twelve different sites in Ontario, British Columbia and other provinces in Canada.

Further, both the companies are the existing partners of the C2C Power project via their affiliate, together with Engie Canada.

Earlier, MIT Renewable had executed the purchase and sale agreement with a new limited partnership led by Axium.

Furthermore, the projects’ enterprise value is approx. C$ 1.9bil (or JPY 158bil), and the sale transaction is likely to be effective post relevant regulatory approval along with a process under existing shareholders’ agreement w.r.t. first refusal right. It is expected to be completed by the March end of next year.

Meanwhile in April 2019, Mitsui had announced its business plan for the current financial year and the company disclosed that cash flow focused management/strengthening of the financial base continues to be one of its key initiatives.