Has Mitsui Sold Some?Just before the Mitsui Loan Deal Mistsui announced a gain on the sale of Investment Securities
News Release: Mitsui Matsushima Co.,Ltd. June 18, 2008
Mitsui Matsushima Subsidiary Records Gain on Sale of Investment Securities
Mitsui Matsushima International Pty.Ltd., a subsidiary of Mitsui Matsushima Co.,Ltd., will record the following gain resulting from the sale of part of its investment securities.
1. Reason for selling investment securities
To generate funds required to aquire new sources of coal.
2. Dates of gain on sale of investment securities
June 4, 2008 through June 12, 2008 (trade dates)
3. Details of gain on sale of investment securities
(1) Type of securities sold Listed securities of one company
(2) Gain on sale About A$4million (about 420 million yen)
4. Outlook
The above gain will be recorded as an extraordinary gain in the consolidated income statement for the consolidated fiscal year ending March 31, 2009.
Mitsui Matsushima is currently studying the effect of this gain on its forecast for the fiscal year ending March 31, 2009 and will make an announcement when a decision has been reached.
So, given the low price of Mitsui's Warrants perhaps they exercised warrants and sold some stock to help finance the New Elk aquisition and the cost of the loan.
When Java said there is no dilution from a financing for New Elk, maybe he was right...but maybe the dilution came in a different form, namely the exercise of warrants. Everyone assume in part I think that Mitsui would exercise its warrants and hold the shares, however "maybe" they sold some to help with the 19 million dollar loan. Bad thing? Not necessarily. However if Mitsui did sell, it will have made a tidy profit on cheap shares.
So is Mitsui interested in Iron Ore in Madagascar or perhaps is there a Madagascar coal fire burning?
Where does Thyssen Krupp fall into this total scenario? Does Thyssen want the iron ore? Coal? Lossan? Beki?