Wednesday, October 23, 2013
Tepco Sells Systems Business To Hitachi
This move is in part to promote the outsourcing of system-related tasks. Along with this move, Tepco and Hitachi will conclude a business alliance in the information systems business.
Tepco Systems will establish a new company in March 2014 through a company split. Hitachi and its group company Hitachi Systems Ltd. will purchase equity interests in the new company of 15.6% and 51.0%, respectively, from Tepco to make the new company, Hitachi Systems Power Services Ltd., a consolidated subsidiary of Hitachi.
Tepco has not disclosed the value of the sell-off. However, the utility said that with this deal, it will achieve its target for selling subsidiaries and affiliated companies. Tepco is expected to sell businesses worth a total of 130.1 billion yen in the period from the fiscal year ending March 2012 through the one ending March 2014. It has already made 126.2 billion yen in such sales as of the April-June quarter.
(Nikkei Quick News, Oct. 23)