Mitsui & Co. of Japan said it plans to liquidate its unit, Mitsui & Co. LNG Investment Limited (MITLI), following the transfer of its holdings in LNG projects to the Japanese company.
The status of MITLI changed from a consolidated subsidiary to an unconsolidated subsidiary as a result of reduction in paid-in capital after investments held by MITLI have been transferred to Mitsui, the company’s statement issued on Thursday reveals.
MITLI was established for the purpose of managing its investments in an integrated manner, Mitsui said.
However, the recent business environment has led to the transfer of investments and the planned liquidation as part of Mitsui’s cost-cutting and streamlining measures.
The deconsolidation is a part of Mitsui’s capital reduction with the liquidation expected to be completed approximately six moths following the capital reduction, the company added.