[Overseas Development] Advisory Services for Yonden's Acquisition of Stake in South Field Energy (US)

Shikoku Electric Power Co., Inc. (headquarters: Takamatsu, Kagawa Prefecture; "Yonden"), acquired equity interest in South Field Energy LLC (SFE), a natural gas-fired combined-cycle power plant being developed by Advanced Power of the US. The stake was acquired from Advanced Power. DBJ provided advisory services to Yonden when the company sought to partake in the capital of SFE.

This is Yonden's first participation in the power generation business in North America and its fifth power generation undertaking overseas, following projects in regions including Qatar, Oman, and Chile. Through its acquisition of equity in SFE, Yonden will be able to participate in the construction of a 1,182 MW combined-cycle power plant, which uses a highly efficient gas turbine, in Ohio (US). The plant plans to supply electricity to the northeastern part of the US through PJM, the largest wholesale electric power market in the US, which is a part of the country's overall wholesale electric power market (operations are scheduled to be launched in 2021.)

Yonden positions its international business development as one of the driving engines of its next growth. Going forward, the company plans to utilize its technology and knowhow, including that for operations and maintenance cultivated in its domestic power generation business and overseas independent power producer and consulting businesses. In addition, the company plans to expand its overseas independent power producer business by using this project as a foothold to other regions, extending the reach of its electric power generation methods.

As an advisor to Yonden, DBJ assisted the company with due diligence, negotiation of terms with the seller, and conclusion of the contract. DBJ thereby coordinated all steps, and supported Yonden's consideration, of this project.

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