Japan's largest energy company Jera Co Inc has acquired 22 percent stake of Summit Power International Limited for $330 million in a move to establish major energy infrastructure, including power generation projects, in Bangladesh.
The International Finance Corporation (IFC), the IFC Emerging Asia Fund, and the EMA Power, which have been Summit Power's shareholders 2016, will exit through this transaction.
However, the IFC will continue as a large lender to Summit Power, said a press release by Summit.
Summit Group is the largest independent power producer in Bangladesh. Summit Power, registered in Singapore, is the holding company of the entire energy portfolio of the group.
The investment from Jera has been finalised within four months of signing a memorandum of understanding (MoU) between Jera and Summit in Tokyo in the presence of Prime Minister Sheikh Hasina.
As a shareholder of Summit Power, Jera will strive to increase the corporate value of Summit through efficient construction and operation of its power generation facilities and contribute to the sustainable economic growth of Bangladesh.
"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 programme of $3 billion by 2022 in Bangladesh," said Summit's founder Chairman Muhammed Aziz Khan.
"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 unrivalled presence and capacity in the country. Thus, we will humbly and steadily provide our support to them in the future," said Toshiro Kudama, chief executive officer of Jera Asia.
"We look forward to working together with Summit in supplying reliable electricity and 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."
"Bangladesh has come a long way and it is a pleasure to see new investors recognising the vast potential offered by this market. We wish Summit and Jera even greater success in the years to come," said Co-Head of the IFC Emerging Asia Fund Andrew Yee.