OREANDA-NEWS. February 24, 2011. 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 region.