The Tokyo Electric Power Co., Inc.
On February 23, The Tokyo Electric Power Co., Inc. (TEPCO) and Mitsubishi
Corporation (MC) today agreed to a partnership in managing Electricity
Generating Public Company Limited (EGCO), one of the largest Independent
Power Producer (IPP) holding companies in Thailand. The joint operations
of TEPCO and MC will be handled by the latter's wholly-owned subsidiary
TEPDIA Generating B.V. (TEPDIA).
MC currently owns 11.21% (59,011,803 shares) of EGCO through its joint
venture with CLP Holdings, Ltd. (CLP), Hong Kong's largest electric
utilities company. Through TEPDIA, MC has agreed to acquire CLP's indirect
interest in EGCO, amounting to an additional 13.36% (70,354,375 shares
worth approximately 23 billion JPY). At the same time, TEPCO will purchase
50% of TEPDIA's shares, and assume equity interest in this partnership of
approximately 21 billion JPY.
The TEPDIA agreement establishes TEPCO and MC as indirect shareholders of
EGCO, with each of the partners holding a 12.286% interest (64,683,089
shares). The share purchase process through TEPDIA is expected to be
completed in the first half of April this year, paving the way for TEPCO
and MC to participate jointly in EGCO's management.
Utilizing its technical expertise and Operation and Maintenance (O&M) know-
how, TEPCO aims to promote further development of Thailand's electricity
sector. The company is hoping to leverage the strengths of its "2020
Vision", a plan that prioritizes overseas business to stimulate future
core growth. This should result in increased profitability and an enhanced
business portfolio, and more importantly, allow the TEPCO Group to make a
global impact in the creation of low-carbon societies.
MC has been involved in EGCO's management since 2006, and hopes to continue
playing a valuable role in the development of electricity sectors, in both
Thailand and its neighboring countries. To this end, MC has established
Diamond Generating Asia, Limited (DGA), a subsidiary that manages IPP
projects in Southeast Asia and Taiwan. Through DGA, MC is presently
developing IPP projects in Vietnam, Indonesia, and other countries in the