Jul. 27, 2020
Progress of Sherritt’s Plan of Arrangement under Canada Business Corporations Act
Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; President and CEO: Masayuki Hyodo) hereby announces the progress of Sherritt International Corporation (“Sherritt”)’s capital restructuring process in relation to the Ambatovy Nickel Project (“Ambatovy”) in Madagascar.
Sherritt has submitted a Plan of Arrangement (“PoA”) under the Canada Business Corporations Act in February this year, and is in the process of restructuring its capital structure. On July 23rd (local time), Sherritt has announced that it has acquired 89% of the Debtholder’s votes in favor of the approval of the PoA.
The PoA includes a transaction proposal of an exchange between Sherritt’s financial loan owed to Sumitomo Corporation with Sherritt’s corresponding shares in Ambatovy. Following the Canadian court approval of the PoA, Sumitomo Corporation will effectively increase its shares of Ambatovy by 6.5% to 54.17%. As Ambatovy will continue to be a jointly controlled entity, it will remain as an Equity Method Affiliated Company of Sumitomo Corporation.
Sumitomo Corporation will discuss further with Sherritt on this matter.