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07 October 2019

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JERA invests USD 330 million to buy 22% stake in Summit

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. Summit is the largest independent power producer (IPP) in fast growing Bangladesh. The investment has been finalized within only four months of signing the memorandum of understanding (MoU) between JERA and Summit in Tokyo, in presence of the Honourable Prime Minister Sheikh Hasina, Honorable State Minister, Ministry of Power, Energy and Mineral Resources, Nasrul Hamid MP, Honorable State Minister, Ministry of Foreign Affairs, Shahriar Alam MP, Honorable Principal Coordinator of SDG and Chairman of MIDI (Moheshkhali-Matarbari Integrated Infrastructure Development Initiative) Md. Abul Kalam Azad, HE Ambassador of Bangladesh to Japan Rabab Fatima and Chairman of the Summit Group Muhammed Aziz Khan.

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’s Founder Chairman Muhammed Aziz Khan expressed his satisfaction with the investment stating, “Much needed technology and capital for Bangladesh’s fast growing power and energy market will be available from JERA with their vast knowledge and balance sheet. JERA by far could be our best partner. This partnership will support our investment program of USD 3 billion by 2022 in Bangladesh.”

Toshiro Kudama, CEO of JERA Asia said, “JERA is fully dedicated and committed to the future development and economic growth of Bangladesh through this precious partnership with Summit. We believe that Summit has unrivaled presence and capacity in the country. Thus, we will humbly and steadily provide our support to them in the future. We look forward to working together with Summit in supplying not only reliable electricity but also primary energy sources to the people of Bangladesh. Our mission is to provide comprehensive solutions with state-of-the-art technologies to meet the underlying challenges in the energy industry globally.” JERA aims for excellence in operations and to that end will support Summit with technical expertise and human resources.

IFC, IFC Emerging Asia Fund, and EMA Power, were shareholders of Summit since 2016 until now, and will exit through this transaction. However, IFC will continue to be a large lender to Summit.

Co-Head of the IFC Emerging Asia Fund, Andrew Yee, said, “It has been a privilege to be a board director of Summit for the last three years and I congratulate Summit on the enormous progress made in that time. Bangladesh has come a long way and it is a pleasure to see new investors recognizing the vast potential offered by this market. We wish Summit and JERA even greater success in the years to come.”

English Newspaper
The Daily Star, October 08, 2019
The Financial Express, October 08, 2019
The Daily Sun, October 08, 2019
New Age, October 08, 2019
Dhaka Tribune, October 08, 2019
Daily Asian Age, October 08, 2019
The Bangladesh Post, October 08, 2019
The Daily New Nation, October 08, 2019
The Observer, October 08, 2019
News Today, October 08, 2019
The Independent, October 08, 2019

Bengali Newspaper
Prothom Alo, October 08, 2019
Kaler Kantho, October 08, 2019
Bonik Barta, October 08, 2019
Samakal, October 08, 2019
The Daily Janakantha, October 08, 2019
Desh Rupantor, October 08, 2019
Ittefaq, October 08, 2019
Daily Naya Diganta, October 08, 2019
Shomoyer Alo, October 08, 2019
Protidiner Sangbad, October 08, 2019
Share Biz, October 09, 2019

Japanese News Portal
Nikkei, October 07, 2019
Sankei, October 07, 2019
News Goo, October 07, 2019
Denki Shimbun, October 08, 2019
Sankei Biz, October 08, 2019
MSN, October 08, 2019
Livedoor News, October 08, 2019

Online Portal
JERA Press Release, October 07, 2019
Reuters (Updated), October 07, 2019
Reuters, October 07, 2019
Nikkei Asian Review, October 08, 2019
ET Energy World, October 07, 2019
LNG World News, October 07, 2019
Nasdaq, October 07, 2019
Project Finance International, October 07, 2019
The Star, October 07, 2019
Xinhua, October 07, 2019
O&G links, October 07, 2019
Market Screener, October 07, 2019
GNL Global, October 07, 2019
IJ Global, October 08, 2019
china.org.cn, October 07, 2019
EQ International, October 07, 2019
Law360, October 07, 2019
Natural Gas World, October 07, 2019
LNG Journal, October 07, 2019
Yahoo Finance, October 08, 2019
EIN World News Report, October 08, 2019
High Leverage Forex, October 08, 2019
M & A Navigator, October 08, 2019
Sharenet, October 08, 2019
Deal Street Asia, October 08, 2019
Gas to Power Journal, October 08, 2019
investing.com, October 08, 2019
NS Energy, October 08, 2019
Gas Strategies.com, October 08, 2019
South Asian Monitor, October 08, 2019
Asian Power, October 09, 2019
Energy Central, October 09, 2019
Biz Data Insight, October 09, 2019
The Daily Star, October 07, 2019
Bangladesh Sangbad Sangstha (BSS), October 07, 2019
Prothom Alo (English Version), October 07, 2019
Arthosuchak, October 07, 2019
The Financial Express, October 07, 2019
Daily Sun, October 07, 2019
bangla.bdnews24, October 07, 2019
bdnews24.com, October 07, 2019
The Business Standard, October 07, 2019
Energy & Power, October 07, 2019
Bangla Tribune, October 07, 2019
Ittefaq, October 07, 2019
Bonik Barta, October 07, 2019
sharebazarnews.com, October 07, 2019
sunbd24.com, October 07, 2019
newsg24.com, October 07, 2019
Corporate Sangbad, October 08, 2019
The Finance Today, October 08, 2019
Energy Bangla, October 08, 2019
Dainik Sangbad Konika, October 08, 2019

Social Media
(Facebook) Summit Power International, October 07, 2019
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(Twitter) Summit Power International , October 07, 2019
(Facebook) Message from Andrew Yee, Co-Head of the IFC Emerging Asia Fund, October 07, 2019