Mitsui to Sell its Interest in C2C Power Wind & Solar Power Generation Portfolio in Canada

Source Press Release
Company Mitsui & Co., Ltd.Axium Infrastructure Inc. 
Tags Asset Deals, Deals, Renewable Energy, Power
Date October 29, 2019

Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Tatsuo Yasunaga) has entered into an agreement with Axium Infrastructure ("Axium"), to sell its entire interest (30%) in C2C Power LP ("Project"), which has operated 12 assets of wind and solar power generation portfolio in Canada. Axium and Mitsui are existing partners of the Project through each of its affiliate, together with  Engie Canada Inc. Mitsui has invested in the Project through its investment company MIT Renewables Inc., which executed a purchase and sale agreement with a new limited partnership led by Axium. The Projects' enterprise value is approximately C$ 1.9bil (equivalent to approximately JPY 158bil on a C2C LP 100% basis). This transaction will be effective after relevant regulatory approval and a process under existing shareholders' agreement in relation to first refusal right, which are expected to be completed by the end of March 2020.

In Mitsui's business plan for the fiscal year ending in March 2020 announced on April 26 of this year, Mitsui states that cash flow focused management/strengthening of the financial base continues to be one of its key initiatives. In line with the plan, this asset divestment was conducted as a part of the strategic asset recycling, and the expected capital gain from this transaction is largely incorporated in the business plan.

1. Outline of C2C Power Wind and Solar Power Generation business

Location  12 sites in Ontario, British Columbia and other provinces in Canada 
Generation Capacity  679MW (Installed Capacity) 
Fuel Type  Wind, Solar 
Buyer of Electricity  Electricity wholesale market, Electricity Company in each location. 
Commencement of Operation  2007 to 2014 

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