Hexagon Composites ASA (Hexagon, the “Company”), manufacturer of composite Type 4 pressure vessels, and major Japanese trading company Mitsui & Co., Ltd. (Mitsui) have on 27 February 2016 entered into an investment agreement whereby Mitsui undertakes to subscribe for more than 33 million new ordinary shares of the Company.
At the same date, Hexagon Composites and Mitsui have entered into a five year strategic alliance, pursuant to which the parties, for as long as Mitsui remains a substantial shareholder in the Company, among other things, agree to use their reasonable efforts to discuss and promote the Company’s market and commercial opportunities and development in the best interests of the Company.
Assuming approval of the issue of new shares at an extraordinary general meeting of Hexagon, and including planned Mitsui acquisitions of a number of exisiting shares from the Flakk Group, Mitsui will hold 41,666,321 shares (corresponding to 25.01% of the outstanding shares of the Company after the issuance of the New Shares).
“As a major global corporation, Mitsui will strongly support Hexagon Composites’ strategic development of new markets and segments. With its Japanese base, Mitsui has deep experience pertaining to carbon fiber related industries. Japan has taken the lead in developing the Hydrogen society, and we look forward to drawing on Mitsui’s capabilities in executing our Hydrogen strategy. With the capital to be contributed by Mitsui, we will significantly strengthen our balance sheet and thus our capacity to pursue organic as well as non-organic growth initiatives”, says Jon Erik Engeset, President & CEO of Hexagon Composites.
“Leveraging the opportunity with Hexagon Composites and its lightweight products, we will pursue innovative solutions to reduce CO2 emission. We plan to enhance the development of Hexagon Composites’ hydrogen strategy, aiming to pave our way to hydrogen societies near future” says Isao Kuroda, General Manager of Performance Materials Division in Mitsui.
“As the main shareholder of Hexagon Composites ASA, the Flakk Group is very pleased to welcome Mitsui as a new strategic investor. We are convinced that Mitsui, with its comprehensive industrial background and global reach, will contribute strongly to the future success of Hexagon Composites. The Flakk Group will continue as a substantial, long term investor in Hexagon Composites and we are looking forward to continuing to support the further development of the company”, says Knut Flakk, Chairman of Hexagon Composites and CEO of Flakk Group.
(Source: adapted from Hexagon Composites ASA press release)