Press Release 2012

Merger of C Energy Co., Ltd. and LNG Chubu Corporation

February 23, 2012

Chubu Electric Power Co.,Inc.

C Energy Co., Ltd. (President and CEO Tokihiko Yamada; hereafter referred to as C Energy) and LNG Chubu Corporation (President and CEO Shigeyoshi Araki; hereafter referred to as LNG Chubu), which are group companies of Chubu Electric Power Co., Inc. (President and Director Akihisa Mizuno; hereafter referred to as Chubu Electric Power), have proceeded with talks with the intention of merging the two companies. (Notification published on October 28, 2011)

Today, in an Extraordinary Shareholders’ Meeting for both companies, April 1, 2012 was approved as the date for the merger.

1 Objective of merger

C Energy has continued to broadly meet the energy-savings, cost-savings, CO2-reduction and other needs of customers through its on-site energy service (Note 1) and ESCO business (Note 2). LNG Chubu has used the property of liquefied natural gas (LNG) of emitting less carbon dioxide than oil and coal as a strength to actively expand its LNG marketing business.

As a company that will be a mainstay in the energy business of the Chubu Electric Power Group, we will combine the technology, knowhow and other business resources the two merging companies have developed to date to realize a synergistic effect. In order to respond to their customers' expectations with even greater speed and certainty than before, we will develop a single unified system capable of providing integrated solutions for everything from fuel marketing to energy facilities.

 

(Note 1) Design, construction, possession, operation and maintenance of utilities such as electric power facilities, power receiving and transforming facilities and heating/cooling facilities

(Note 2) Total services for business solutions related to energy, from selection, delivery, construction, operation, maintenance, measurement and testing of devices needed for customers to use energy, to financing

2 Overview of merger

(1) Date of merger

April 1, 2012

(2) Lines of business

○Marketing of LNG, natural gas, oil and other types of fuel
○Design and planning, construction, marketing, leasing, operation, monitoring, maintenance, studies and consultation for buildings, energy facilities, systems related to energy conservation, etc.
○Streamlining of buildings and energy facilities, studies on energy savings, consultation
○Power generation business and supply of energy sources such as electricity and steam

(3) Type of merger

Absorption leaving C Energy as the surviving company

(4) Firm name

C Energy Co., Ltd. 

(5) Location of headquarters

2-19-6 Shinsakae, Naka-ku, Nagoya City

(6) Representative

President and CEO Tokihiko Yamada 

(7) Equity capital

¥3,600 million 

(8) Shareholders and percentage of shares held

Chubu Electric Power Co., Inc. 73.082%
Toho Gas Co., Ltd.          11.996%
Iwatani Corporation          9.193%
Chubu Gas Company, Ltd.     2.039%
Chubu Plant Service Co., Ltd.  1.845%
C-Tech Corporation              1.845%

3 Overview of companies in merger

Firm name

 C Energy
(Surviving company)

 LNG Chubu
(Absorbed company)

Lines of business

 Study and consultation relating to energy utilization; proposal and provision of energy-saving systems; proposal of design, construction, operation, monitoring, maintenance, and fuel for on-site energy systems; etc.

 Marketing of liquefied natural gas (LNG); study and consultation relating to energy utilization; etc.

Date of establishment

April 2, 2001 

June 8, 2000 

Location of headquarters

2-19-6 Shinsakae, Naka-ku, Nagoya City 

87-1 Aza-Chomei, Oaza-Kamezakishinden, Kawagoe-cho, Mie-gun, Mie Prefecture 

Representative

President and CEO Tokihiko Yamada 

President and CEO Shigeyoshi Araki 

Equity capital

¥3,400 million 

¥200 million 

No. of employees
(end of March 2011)

62 employees 

15 employees 

Revenue
(end of March 2011)

¥9,500 million

¥11,100 million

Shareholders and percentage of shares held

Chubu Electric Power Co., Inc.
75.71%
Toho Gas Co., Ltd.
16.44%
Chubu Gas Company, Ltd.
2.79%
Chubu Plant Service Co., Ltd.
2.53%
C-Tech Corporation
2.53%

Chubu Electric Power Co., Inc.
66.0%
Iwatani Corporation
34.0%