TEPCO considering selling KDDI shares to pay for Fukushima disaster

18 Apr 2011

Japanese power utility Tokyo Electric Power Company (TEPCO) is reportedly mulling the sale of its stake in the country’s number two telco KDDI Corp and other real estate, as the beleaguered firm faces up to the imminent compensation claims stemming from the disaster at its Fukushima Daiichi nuclear power plant. Yesterday’s Nikkei business daily suggested a sale of KDDI was to take place to help pay for compensation, but today TEPCO denied this, saying that no decision has yet been taken on offloading shares in the telco. Initial estimates from JP Morgan suggest the power utility could face claims of up to USD24 billion arising from the nuclear leak in the current financial year, while Bank of America-Merrill Lynch has said the claims could spiral to USD130 billion if the crisis continues.

Japan, KDDI (au)