Chubu Electric Power Co.,Inc. | On Determining the Direction of the Company Split of the General Electricity Transmission and Distribution Businesses and the Retail Electricity Businesses, and the Decision to Establish the Split Preparation Company - Press Releases(2018)
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Press Release 2018

On Determining the Direction of the Company Split of the General Electricity Transmission and Distribution Businesses and the Retail Electricity Businesses, and the Decision to Establish the Split Preparation Company

November 27, 2018

Chubu Electric Power Co.,Inc.

Chubu Electric Power would like to announce that it has determined the direction of the general electricity transmission and distribution business and retail electricity business company split on April 1, 2020, and has decided to establish a split preparation company for a smooth transition on April 1, 2019.

Splitting off the general electricity transmission and distribution businesses and the retail electricity businesses will be conducted under the condition of it being approved in the annual shareholders meeting to be held in June 2019 (general transmission and distribution business, etc.) and it gaining the permission and approval of relevant government offices.

1 On the Direction of the Company Split

(1)Direction of the company split

The general transmission and distribution business is required to be increasingly neutral as the legal separation of the power transmission and distribution sector is mandated in the Electric Utility Industry Law. The retail electricity business is also striving to expand the business autonomously and to improve service standards through accelerated cooperation with a wide range of businesses.

To that end, Chubu Electric Power will be establishing companies wholly owned by and under Chubu Electric Power and its corporate functions, that each pursue these businesses.

(2)Company split method

It will be an absorption-type split with Chubu Electric Power as the split company and each split preparation company to be the succeeding company.

2 On the Establishment of a Split Preparation Company

(1)Overview of the split preparation company

 Trade name

Chubu Electric Power Transmission and Distribution Business Spilt Preparation Company Incorporated

Chubu Electric Power Retail Electricity Business Split Preparation Company Incorporated

 Location

1, Higashi-shincho, Higashi-ku, Nagoya-shi, Aichi Prefecture

1, Higashi-shincho, Higashi-ku, Nagoya-shi, Aichi Prefecture

 Position and name of the representative

President & Representative Director
Yaoji Ichikawa

President & Representative Director

Kingo Hayashi

 Business description

General transmission and distribution business, etc.

Retail electricity business, etc.

 Stated capital

5 million yen

5 million yen

 Date of establishment

April 1, 2019

April 1, 2019

Fiscal year end 

March 31

March 31

Large shareholder and the ratio of share-holding 

Chubu Electric Power Co., Inc.
100%

Chubu Electric Power Co., Inc.
100%

Relationship between the listed company and the said companies 

Capital relationship: To be established as a subsidiary wholly owned by Chubu Electric Power

Human resource relationships: Director(s) are to be dispatched from Chubu Electric Power

Transactional relationship: There have been no transactions between Chubu Electric Power as sales activities have yet to start.

3 Future Outlook

Chubu Electric Power will become the holding company for each business subsidiary and will maintain its own listed status. We will announce the details of the company split as they are determined.

4 Future schedule

 April 1, 2019 (schedule)

Establishment of the split preparation company
(Chubu Electric Power Transmission and Distribution Business Split Preparation Company Incorporated, Chubu Electric Power Retail Electricity Business Split Preparation Company Incorporated ) 

 April 2019 (schedule)

Conclusion of the absorption-type split contract 

 June 2019 (schedule)

Approval of the absorption-type split contract in a shareholders meeting resolution(General transmission and distribution business, etc.) 

 April 1, 2020 (schedule)

The absorption split goes into effect