Tepco to buy stake in Thai power producer

Tepco will invest $254 million for a 12 per cent stake in Thailand's Electricity Generating to expand beyond the Japanese market.

Tokyo Electric Power Cowill purchase the stake in the Thai independent power producer through Mitsubishi, which will buy shares from Hong Kong's CLP Holdings and sell a portion to Tepco.

Egco is Thailand's second-largest private power producer after Ratchaburi Electricity Generating Holding.

Egco has interests in 14 power plants in Thailand, Laos and the Philippines with a combined capacity of about 4,277MW accounting for about 12 per cent of the country's generating capacity.

Through the deal, Mitsubishi will increase its interest in Egco to 12.286% from the current 11.21%, at a cost of about $24 million.