Mitsubishi Materials revises capital increase for Chilean copper subsidiary

Mitsubishi Materials Corporation has announced a revision to its previously disclosed plan for the capital increase of its Chilean subsidiary. Initially, the company intended to establish a new entity, MM MV Inversiones SpA, by contributing all shares of Mantoverde S.A. to it, and then contributing all shares of the new entity to Mitsubishi Materials Chile SpA (MM Chile).

The revised plan, approved by the board of directors, now involves contributing all shares of Mantoverde S.A. directly to MM Chile, omitting the establishment of the intermediate new company. This change is anticipated to result in MM Chile becoming a specified subsidiary. The capital increase amount for MM Chile is now projected to be approximately $366.2m, an increase from the previously planned $349.6m, taking into account inflation under Chilean law. The implementation date for the capital increase is now scheduled for October 2025, a delay from the initial June 2024 target.

The change was prompted by longer-than-expected administrative procedures in Chile for establishing a new company and a change in Mantoverde S.A.'s funding sources, leading to a re-evaluation for more efficient business operations. Mitsubishi Materials expects the impact on its financial performance to be minor, as the capital increase is for its 100% owned subsidiary, both before and after the revision.