October 7, 2008

Mitsui & Co to buy extra US$124 million stake in multigrain of Brazil 

Japanese trading house Mitsui & Co is buying an additional stake in Multigrain, Brazil.

Japanese trading house Mitsui & Co. (8031.TO) said Tuesday, 30 September 2008 that it has agreed to buy an additional stake worth US $123.75 million, or about Y13 billion, in Brazilian agribusiness company Multigrain.

The Tokyo-based company said it and US cooperative CHS Inc. (CHSCP) have accepted a combined US $200 million worth of new shares of Multigrain. The Brazilian company will use the proceeds from the new share issue to boost production of cotton, soy and corn through land purchases and other expenditures.

After the new share purchase, Mitsui and CHS each will have a 39.35 percent stake in Multigrain, making them the biggest shareholders.

Multigrain hopes to reach US $1 billion in revenues this year, up from US $500 million in 2007.