Australia-based AGL Energy is in discussions to acquire Tokyo Electric Power Co’s 32.5% stake in the Loy Yang Power plant for A$145 million ($154.9 million), the news reports said.
Tokyo Electric Power has agreed to a collaboration with AGL valuing the stake at less than half the A$326.7 million at which AGL values its 32.5% stake in the state of Victoria’s largest power station, said the Australian Financial Review.
TEPCO needs to sell assets to help raise funds for a massive clean-up and compensation bill stemming up from last year’s Fukushima nuclear disaster, the reports said.
The sale of the Loy Yang stake has to be approved by all the shareholders in the plant, including Thailand’s Ratchaburi Electricity and Australian superannuation funds that are likely to decide in the next week.
AGL Energy is the largest Australian gas and electricity retailer. It has major investments in the supply of gas and electricity and has also invested in sustainable energy businesses like wind farms and a hydroelectric power station in Victoria’s High Country.
Tokyo Electric Power is an electric utility servicing Japan’s Kantoregion, Yamanashi Prefecture and the eastern portion of Shizuoka Prefecture.