BAKU, Azerbaijan, November 13. In a nuanced approach to investment strategy, ITOCHU Corporation addresses perceptions that it is primarily focused on acquiring additional stakes in established investments, Trend reports.
While this is a notable aspect of their strategy, the company reveals it is actively considering new major investments. Acknowledging that some opportunities were passed over after meticulous evaluation, ITOCHU remains in the process of deliberating others. The deliberation is crucial given the substantial investment amounts and the involvement of various partners, requiring a careful assessment of feasibility and timing.
Importantly, the company clarifies that the potential projects being considered may not necessarily extend into the fiscal year ending in 2025 (FYE 2025); some could indeed be executed in FYE 2024.
Contrary to the perception that acquiring additional stakes in listed subsidiaries and affiliates might not qualify as growth investments, ITOCHU underscores its strategic approach. The company has directed entities like CTC and DAIKEN toward privatization, aiming to foster and expand synergy. Consequently, acquiring additional stakes is viewed as a form of growth investment. ITOCHU employs a dynamic strategy, acquiring or selling stakes based on a continual review of the strategic significance of each listed subsidiary and affiliate.
Looking ahead to growth investments for the next fiscal year and beyond, ITOCHU emphasizes its commitment to thorough analysis. Factors such as balance sheet (B/S) scale, profit contributions of investments, and the impact on cash flows will be meticulously examined. The company plans to unveil its updated investment policy in May 2024, providing stakeholders with a comprehensive understanding of its evolving approach to investments.
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