September 30, 2008
Tokyo Gas, 2 Others to Buy Sendai City’s Gas Supply Biz
Sendai, Miyagi Pref., Sept. 30 (Jiji Press)--Tokyo Gas Co. and two other companies have applied to jointly buy the gas distribution service run by this northeastern Japan city.
The team, which also includes Tohoku Electric Power Co. and Japan Petroleum Exploration Co. , was granted the right to negotiate with the Sendai municipal government because it was the sole applicant.
The move comes as the city is set to privatize its gas distribution service in 2010.
The three firms will work out details of their acquisition plan ahead of a tender slated for February 2009. They will consider inviting local firms to join the consortium.
The three are likely to propose buying the gas service for more than 60 billion yen.
Through the acquisition, Tokyo Gas aims to expand its business base. Tohoku Electric Power and Japan Petroleum Exploration currently supply liquefied natural gas to the city of Sendai.
At a news conference, Tohoku Electric Power President Hiroaki Takahashi said that the planned acquisition will help promote the development of the region.
Takahashi said he hopes Tokyo Gas will play a leading role.END
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