ORIX Electric Power Corporation to Sell Business
TOKYO, Japan – September 11, 2017- ORIX Corporation (“ORIX”) and ORIX Electric Power Corporation (“ORIX Electric Power”) announced today that they have decided to sell and transfer the entire bulk of the electric purchasing service business conducted by ORIX Electric Power to the Kansai Electric Power Company, Inc. (“KEPCO”).
However, electric power-related business, with the exception of bulk electric purchasing service for condominium buildings, will remain a key area into which the ORIX Group will continue to do business and pursue new investments.
1. Reason for business sale and transfer
ORIX Electric Power plays a part in the environment and energy-related business, which is a key area for the ORIX Group, and has expanded and promoted the bulk electric purchasing service for condominium buildings. At this time it has decided to sell and transfer said business based on the judgment that a sale and transfer to KEPCO would be most suitable, from the view point of increasing its customer services and expand its business.
Services will continue to be provided in the future with no changes to the contracts held with each condominium. Also, existing subscribers should feel reassured in that the business sale and transfer is being carried out on the condition that the business will continue to be promoted, and so we encourage continued use of the bulk electric purchasing service.
2. Method of business sale and transfer
ORIX Electric Power will use the company split procedure to establish a new company that will inherit assets related to the bulk electric purchasing service. All of that new company’s stock will then be transferred to KEPCO.
3. Schedule of business sale and transfer
contract date: September 5, 2017
Expected stock transfer date: October 31, 2017
■ Overview of ORIX Electric Power
| Name: Established: Representative: Capital: Main business: |
ORIX Electric Power Corporation May 10, 2010 Nobuhisa Hosokawa, President 339 million yen (including capital reserve) Bulk purchasing and distribution of electric power, such as for housing complexes (bulk electric purchasing service for condominiums) |
Contact Information:
ORIX Corporation
Corporate Planning Department
Tel: +81-3-3435-3121
About ORIX:
ORIX Corporation (TSE: 8591; NYSE: IX) is an opportunistic, diversified, innovation-driven global powerhouse with a proven track record of profitability. Established in 1964, ORIX at present operates a diverse portfolio of businesses in the operations, financial services, and investment spaces. ORIX’s highly complementary business activities span industries including: energy, private equity, infrastructure, automotive, ship and aircraft, real estate and retail financial services. ORIX has also spread its business globally by establishing locations in a total of 36 countries and regions across the world. Through its business activities, ORIX has long been committed to corporate citizenship and environmental sustainability. For more details, please visit our website: http://www.orix.co.jp/grp/en/
Caution Concerning Forward Looking Statements:
These documents may contain forward-looking statements about expected future events and financial results that involve risks and uncertainties. Such statements are based on our current expectations and are subject to uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Factors that could cause such a difference include, but are not limited to, those described under “Risk Factors” in the Company’s annual report on Form 20-F filed with the United States Securities and Exchange Commission and under “(4) Risk Factors” of the “1.Summary of Consolidated Financial Results” of the “Consolidated Financial Results April 1, 2016 – March 31, 2017
Source: orix.co.jp
