August 21, 2008

Tokyo Gas, Tohoku Electric, JAPEX May Acquire Sendai’s Gas Biz

Tokyo, Aug. 21 (Jiji Press)--Tokyo Gas Co. , Tohoku Electric Power Co. and Japan Petroleum Exploration Co. are considering acquiring gas service operations of the city of Sendai, it was learned Thursday.

The acquisition price of the city's gas bureau, which is to be privatized in 2010, is estimated to reach some 60 billion yen. If realized, the deal would be the largest privatization of a public gas service provider in Japan in value.

The northern Japan city is set to solicit bidders for the bureau, the biggest public gas service entity in Japan, in September.

The three companies are expected to make final consultations on such details as whether to set up a joint firm to buy the bureau.

Firms in Sendai may join the three-company group for the acquisition.END

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