TEPCO selling assets to fund compensation efforts

Bloomberg Businessweek reported earlier today:

Tokyo Electric Power Co. will raise 186.3 billion yen ($2.4 billion) selling its stake in KDDI Corp., its biggest disposal since saying it plans to offload assets to pay compensation for the Fukushima disaster.

The utility known as Tepco, which owns about 8 percent of KDDI, plans to book a 35.1 billion-yen loss on the transaction, it said in a statement to the Tokyo bourse. Tepco will sell the stock back to KDDI today on the Tokyo Stock Exchange Trading Network System at 521,000 yen a share, the same as yesterday’s close.

Tepco has been selling holdings since the March 11 earthquake and tsunami crippled its Fukushima Dai-Ichi nuclear station, leading to the worst atomic disaster since Chernobyl 25 years ago. Compensation may total 4.5 trillion yen in the first two years of the disaster, according to a report from a government panel that went through the company’s finances.

KDDI, Japan’s second-largest mobile-phone operator, plans to raise as much as 201 billion yen from a sale of convertible bonds to buy back the shares held by Tepco.

Link: http://www.businessweek.com/news/2011-11-28/tepco-sells-2-4-billion-kddi-stake-to-raise-compensation-funds.html

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About Robert Singleton

By day, I work for a call center. In my spare time, I try to save my hometown (and planet) from a nearly constant onslaught of greedheads, lunatics and land developers. I live in a fictional town called Austin, Texas, where I go to way too many meetings.
This entry was posted in Earthquake, Finance, GE Mark I reactor, Japan, Plant shutdowns, Radiation leak, Reactor problems and tagged , , , , . Bookmark the permalink.

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