Sumitomo : Definitive Agreement signed on Sponsor Structural Change in Ambatovy Nickel Project, Madagascar
November 12, 2017 at 09:09 pm EST
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Nov. 13, 2017
Sumitomo Corporation
Sumitomo Corporation (Head Office: Chuo-ku, Tokyo; President and CEO: Kuniharu Nakamura) hereby announces that a definitive agreement on the revision of the partnership structure of Ambatovy Nickel Project ('Ambatovy') has been signed by the three sponsors, Sherritt International Corporation (Head Office: Ontario, Canada; President and CEO: Mr. David Pathe; hereinafter, 'Sherritt'), Korea Resources Corporation (Head Office: Gangwon-do, Korea; President and CEO: Mr. Young-Min Kim) and Sumitomo Corporation. An agreement in principle had been reached earlier, as was announced on May 2. Closing remains subject to various conditions, and is expected to be completed within this year.
With the structural change, Sherritt will reduce its interest to 12%, resume funding at the same level retroactively to the end of 2015 and on a go-forward basis, and continue its commitment to remain as Operator. This will increase and strengthen the partnership of the three sponsors in supporting Ambatovy.
Sumitomo Corporation will become a 47.7% shareholder after the transaction. Under the new structure, Sumitomo Corporation will continue to march together with its partners and strengthen its support to Ambatovy in its endeavors to become a world leading nickel laterite project.
＜Reference data＞ ■ Sumitomo Corporation's Material Issues
Sumitomo Corporation Group positions 'Six Material Issues to Achieve Sustainable Growth with Society' as an important factor in developing business strategies and in the decision-making process for individual businesses. Going forward, we will pursue sustainable growth by resolving these issues through our business activities. This project especially contributes to 'Contributing to the Development of Local Communities and Industries'.
Sumitomo Corporation published this content on 13 November 2017 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 13 November 2017 02:08:03 UTC.
Original documenthttp://www.sumitomocorp.co.jp/english/news/detail/id=30173
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Sumitomo Corporation is a diversified group organized around 7 areas of activity:
- retail distribution of consumer goods (24.4% of net sales): food products, apparel and accessories, pharmaceuticals, building materials, household and decorative items, etc. The group is also developing a real estate business;
- trading of hydrocarbon, mining, chemicals and electronics products (24%): oil, natural gas, copper, gold, silver, zinc, lead, nickel, coal, iron ore, resins, pesticides, petrochemical products, etc.;
- trading of steel products and non ferrous metals (20%): flat and long steel products, tubular products, aluminum products, titanium, etc.;
- distribution of transportation and construction systems and equipments (15.1%): spatial equipments, landing fields, forest machines, motorcycles, mining operating vehicles, etc.;
- telecommunications and multimedia products and services supplies (8.8%): TV wiring, data communication solutions, film distribution services, mobile telephony, Internet access and computing services;
- development and implementation of civil engineering infrastructures (7.6%): power plants, wastewater treatment units, industrial plants, telecommunications centers, etc. The group is also providing logistics services;
- other (0.1%).
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