WEST JAPAN RAILWAY COMPANY West Japan Railway Company
December 9, 2015
As described below, on December 9, 2015, JR-West decided to invest in the urban passenger railway business in Brazil and concluded a contract that calls for the purchase from Mitsui & Co., Ltd., of a portion of the shares of Guarana Urban Mobility Incorporated, a Mitsui subsidiary.
Purpose of investment
Under the Medium-Term Management Plan 2017, the JR-West Group is working to foster growth as a Group, including in global markets. Through participation in overseas railway projects, JR-West aims to open up the potential of new businesses and to develop its human resources through collaboration in the development and operation of overseas railways.
Through this acquisition of shares in Guarana Urban Mobility Incorporated, a Mitsui subsidiary that invests in urban passenger railway businesses in Brazil, and through the technical support that is currently being planned, JR-West will contribute to safe, stable transport on urban passenger railways in Brazil. In addition, a contribution will be made to the development of the railway business in Japan through the acquisition of know-how in the overseas railway business, the development of our human resources, and the provision of technical support.
Overview of investment
Company in which investment will be made Guarana Urban Mobility Incorporated (GUMI)
Number of shares to be acquired 812,736 shares (33.9% of issued shares)
Seller
Mitsui & Co., Ltd.
Date contract concluded December 9, 2015
Attachment
【Investment Structure】
Odebrecht Transport (*)
(*) One of the Brazilian leading conglomerate Odebrecht Group
Mitsui
50.1%
Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development
(JOIN)
16.0%
West Japan Railway
33.9%
GUMI
60.0%40.0%
Odebrecht Mobilidade
Suburban railway in Rio de Janeiro (SuperVia)
No. 6 subway line in São Paulo
LRT in Rio de Janeiro
LRT in Goiania
【Businesses Included in the Deal】
Suburban railway in Rio de Janeiro (SuperVia) | No. 6 subway line in São Paulo | LRT in Rio de Janeiro | LRT in Goiania | |
Business format/ period | Concession/ 1998-2048 | PPP/ 2014-2039 | PPP/ 2013-2038 | PPP/ 2016-2051 |
Opening date | In operation | 2021 | 2016 | 2018 |
OM shareholding | 60.0% | 13.7% | 24.9% | 90.0% |
System/rail length | Suburban lines/270km | Subway/15.3km | LRT/28km | LRT/14km |
Capacity | 1.7 million people/day | 1.million people/day | 285,000 people/day | 240,000 people/day |
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