Equity Participation in JX Metals Deutschland GmbH
Supporting Overseas M&A of Japanese Companies
- Region: Europe
- Energy and Natural Resources
- Equity Participations
The Japan Bank for International Cooperation (JBIC; Governor: Akira Kondoh) signed a shareholders' agreement on April 16 with JX Nippon Mining & Metals Corporation ("JXNMM") and JX Metals Deutschland GmbH ("JXMD") to subscribe for classified shares of JXMD amounting up to EUR 85.6million that carry no voting right.
This transaction is intended to support JXNMM by financing part of funds required for purchasing all shares in H.C. Starck Tantalum and Niobium GmbH ("HCS TaNb"), from HCS TaNb's shareholder, H.C. Starck GmbH in Germany. JBIC's equity participation is undertaken through JXMD, a special purpose company of JXNMM.
HCS TaNb, one of the world's leading companies conducting business in the area of development, production, and distribution of Tantalum and Niobium products (high-purity metal powder),*1
which are widely used in the Japanese electronics industry, has strength in its products backed by its technological and marketing capabilities. Through acquisition of HCS TaNb, JXNMM will establish and strengthen the revenue base of its electronic materials business by utilizing HCS TaNb's capabilities. JBIC will support JXNMM's business deployment mentioned above by utilizing the equity participation function.
As Japan's policy-based financial institution, JBIC will continue to support overseas business deployment of Japanese companies, by drawing on its various financial facilities and schemes for structuring projects including its function of equity participation, and performing its risk-assuming function.
Tantalum and Niobium products are used in the production of capacitor applications for ICT equipment and digital appliances, and in the production of sputtering targets for semiconductor applications.