Japan’s JERA invests USD 330 million to buy 22 percent stake in Summit Power

Sun Online Desk

7th October, 2019 01:21:34 printer

Japan’s JERA invests USD 330 million to buy 22 percent stake in Summit Power

Photo caption: Following the MoU signing between Director of Summit Group Faisal Khan (left) and CEO of JERA Asia Toshiro Kudama (right) in the gracious presence of the Honourable Prime Minister Sheikh Hasina during her state visit to Japan in May 2019, JERA finalizes the investment.

In a move to establish major energy infrastructure, including power generation projects in Bangladesh, Japan’s largest energy company JERA Co., Inc. (“JERA”), has acquired a 22% stake in Summit Power International Limited ("Summit") for USD 330 million.

After the deal, the total equity value of Summit Power International is $1.5 billion.

The new investment was made in accordance with the memorandum of understanding on the development of energy infrastructure projects in Bangladesh that was concluded between JERA and Summit Power in May, JERA said in a statement on Monday.

As a shareholder of Summit, JERA will strive to increase the corporate value of Summit through the efficient construction and operation of its power generation facilities and contribute to the sustainable economic growth of Bangladesh.

Summit Power, the largest independent power producer in the country, owns and operates power generation facilities that produce approximately 1.8 gigawatt, representing about 12 percent of the country's capacity.

The company is currently constructing power generation facilities with a capacity of approximately 590 megawatts and, with several new projects also being planned, significant growth is expected in the future.