KDDI shareholder to offload stake to pay for Fukushima compensation

19 Aug 2011

Japan’s beleaguered utility company Tokyo Electric Power Co (Tepco) is considering a plan to sell its 8% stake in the country’s second largest telecoms operator by revenue, KDDI Corp, according to a government panel set up to handle the company’s restructuring. Dow Jones Newswires quotes Kazuhiko Shimokobe, a bankruptcy lawyer and chairman of the panel, as saying that Tepco is examining two possible means of offloading the asset: firstly, having KDDI buy it itself, or alternatively; finding a buyer on the open market that would buy the share in a way that would not undermine the telecoms sector. As part of the utility’s wider recovery plan, Tepco hopes to raise JPY100 billion (USD1.31 billion) through the divestment of real estate, JPY270 billion from the sale of securities and JPY230 million by divesting affiliated companies. However, Shimokobe notes that the government panel is not convinced of the values of the assets – saying they need more close scrutiny – and that its task will be to ensure the power company unloads all ‘saleable assets’ and undertakes a comprehensive restructuring before it even considers seeking money from the public purse to settle compensation claims arising from the Fukushima Daiichi nuclear disaster.

Japan, KDDI (au)