The Japan Bank for International Cooperation is ready to support Mitsubishi Heavy Industries Ltd.¡¯s joint bid with Siemens for France¡¯s Alstom SA.
¡°The global restructuring of the heavy electric machinery industry is taking place, and we have a mission to increase a number of globally flourishing Japanese companies,¡± Tadashi Maeda, the senior managing director of the bank, said in a recent interview. ¡°We would certainly support them if we received a request¡± for funding assistance from MHI.
JBIC¡¯s offer could ease the financing burden of MHI, which is seeking parts of Alstom¡¯s energy business for €3.1 billion ($4.2 billion). The Tokyo-based company also plans to acquire as much as 10 percent of Alstom from Bouygues SA, a stake valued at about €900 million.
Mitsubishi Heavy spokesman Hideo Ikuno declined to comment Wednesday on its funding plans for the bid.
The government-run bank provided financing for trading firm Marubeni Corp.¡¯s acquisition of Gavilon Holdings LLC and MHI¡¯s joint venture with Vestas Wind System A/S.
MHI may raise funds via subordinated loans and preferred stock to avoid an increase in interest-bearing debt and a drop in credit ratings, Maeda said.
JBIC acquired preferred shares of Marubeni¡¯s Gavilon Agriculture Holdings Co. unit for ?60 billion after trading house Marubeni paid $2.7 billion for the U.S. grain and fertilizer business in July 2013. The bank had a similar deal in April to acquire preferred shares of a Denmark-based unit of MHI valued at €132 million to help its joint venture with Vestas.
MHI plans to acquire stakes in Alstom¡¯s steam and nuclear turbine, power grid and hydro-electricity units, while partner Siemens is offering €3.9 billion for the French firm¡¯s gas-turbine business, they said Tuesday.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.