Tokyo Electric Power Co. shares climbed on Friday following media reports that the utility has drawn proposals from prominent investment groups for a planned capital tie-up. The stock rose as much as 3% to 701.2 yen.
According to the report, Tokyo Electric has attracted interest from private equity firms and investment groups including Blackstone, SoftBank, and Apollo Global for funding that could top 1 trillion yen ($6.3 billion). The company intends to spend several months assessing offers and possible transaction structures.
Other parties noted as having expressed interest include U.S. funds Bain and KKR. The report also named Japan Industrial Partners as a potential bidder, and indicated that Japan Industrial Partners is considering a partnership with the state-backed Japan Investment Corporation.
Tokyo Electric is pursuing private capital partners as part of a sweeping restructuring plan designed to address its substantial decommissioning liabilities and to seek new growth prospects. One specific area of potential expansion cited is demand for data center capacity tied to the artificial intelligence sector.
The restructuring effort is described as a step toward increasing the company’s economic independence. Tokyo Electric continues to manage the long-running financial consequences of the Fukushima disaster, including years of heavy losses related to cleanup and decommissioning, and remains reliant on government-backed funding.
On operations, the company restarted power generation at Unit 6 of the Kashiwazaki Kariwa nuclear plant in February, marking the first time the unit produced power in nearly 15 years. The company is planning to resume commercial operations at the plant by next week.
Context and next steps
- Company will assess offers and possible deal structures over several months.
- Potential funders include private equity and investment firms both domestic and international.
- Capital is sought to reduce decommissioning liabilities and to pursue growth tied to data center demand.