2024/08/20 MOL Acquires Additional Shares of MODEC; Will Convert it into an Equity-method Affiliate

August 20, 2024

TOKYO-Mitsui O.S.K. Lines, Ltd. (MOL; President & CEO: Takeshi Hashimoto) announced that as of today, it completed the purchase on the market of 89,500 shares of common stock of MODEC, Inc. (President & CEO: Hirohiko Miyata; Headquarters: Chuo-ku, Tokyo; Note 1), and along with the 10,162,300 shares already acquired in June 2023 (Note 2), MOL now holds a 15.00% stake in MODEC and will make it an equity-method affiliate.

FPSO Guanabara MV31 (Courtesy: MODEC)

MODEC is a leading company in the offshore oil and gas development industry, engaging in the entire process from Engineering, Procurement, Construction, and Installation (EPCI) of Floating Production, Storage, and Offloading (FPSO) systems to long-term leases and Operations & Maintenance (O&M) for more than 20 years. MOL has long focused on the potential of offshore resources and energy, and has teamed up with MODEC in the FPSO business as a way to contribute to the stable supply of energy.

In June 2023, MOL acquired a 14.86% stake in MODEC through a third-party allotment of new shares and signed a business alliance agreement (Note 3). The additional acquisition announced today will build stronger ties between the companies by making MODEC an equity-method affiliate of MOL, with the goal of further developing both companies' offshore businesses in the era of decarbonization. Future cooperative moves, not limited to the FPSO business, will bring together MODEC's world-leading technology in hydrographic condition analysis and design of floating structures and moorings and MOL's long-standing expertise in offshore solutions.

Through this additional acquisition, MOL will further strengthen its relationship with MODEC as a strategic partner, mutually leverage its management resources to enhance the competitiveness of the offshore business, sustain people's lives, and ensure a prosperous future as a global social infrastructure company with its origins in the sea.

(Note 1) MODEC official website: https://www.modec.com/

(Note 2) April 28, 2023, press release: https://www.mol.co.jp/en/pr/2023/23059.html

(Note 3) Details of business alliance

• Provision of know-how on design, construction, leasing, operation, etc. of FPSOs and so on by MODEC
• MOL's global network and expertise in business development, financing, and regional expertise
• MOL's cooperation in strengthening MODEC's business operation systems
• MOL's human resources support to MODEC

MOL Group 5 Sustainability Issues
MOL Group identifies "Sustainability Issues" (Materiality) as our key issues for sustainable growth with society through realization of the Group Vision.
We anticipate this initiative to contribute especially to the realization of "Safety & Value -Provide added value through safe transportation and our social infrastructure business-", "Environment -Conservation for Marine and global environment-" and "Innovation -Innovation for development in marine technology-."

Public link

Please use the above public link if you want to share this noodl on another website.