Tepco to Sell 20% Stake in Wind Power Unit to Toyota Tsusho
Tokyo Electric Power Co. will sell shares in a wind power company for about 20 billion yen ($263 million), its first significant asset sale to pay for compensation claims after the Fukushima nuclear disaster.
Tepco, as the company is called, will sell a 20 percent stake in Eurus Energy Holdings Corp. to Toyota Tsusho Corp. (8015) by January, Shinichi Ushijima, an official in power project development at Toyota Tsusho, said in Tokyo today. After completion of the sale, Toyota Tsusho will own 60 percent of Japan’s biggest wind-farm operator while Tepco will hold the rest, a statement from the companies said.
The sale is Tepco’s biggest since the triple meltdowns at its Fukushima Dai-Ichi nuclear plant exposed it to as much as 4.5 trillion yen of compensation payments by March 2013, according to an estimate by a government panel. Tepco can sell assets worth 707.4 billion yen within three years, one of the conditions for receiving state support, the panel said earlier this month.
Tepco isn’t planning to sell the remaining stake in Eurus Energy, said Toshiyasu Sakamoto, a general manager in Tepco’s renewable energy development group.
Tepco can raise 247.2 billion yen by selling properties, while it has 330.1 billion yen of shares in other listed companies to sell, the panel headed by bankruptcy lawyer Kazuhiko Shimokobe said. Tepco can also reap 130.1 billion yen selling affiliated companies. Earlier, the utility said it would sell assets worth 600 billion yen.
The company sold holdings worth 11.5 billion yen in the quarter ended June 30, including its stake in a joint venture to invest in Uranium One Inc. (UUU) of Canada with Toshiba Corp. (6502) and Japan Bank for International Cooperation, it said on Aug. 8.
The wind farm operator, which is named after Eurus, the Greek god of the east wind, has 632 megawatts of capacity in the U.S., 820 megawatts in Europe and 669 megawatts in Asia, according to its website.
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