Press Release

Press Release

JERA Co., Inc. Succeeds Fuel Transportation and Trading Business by Company Spin-Off

June 25, 2015
Chubu Electric Power Co.,Inc.

Chubu Electric Power would like to announce that it decided to conclude an absorption-type split agreement ("the Spin-Off") with JERA Co., Inc. ("JERA") to have JERA succeed Chubu Electric Power's fuel transportation and trading business ("the Business").

1  Purpose of company spin-off

On February 09, 2015, Chubu Electric Power and Tokyo Electric Power Company, Incorporated ("TEPCO") agreed on the formation of a comprehensive alliance. We entered into a Joint Venture Agreement to jointly establish a new company that will take an integrated approach to implement fuel procurement, upstream investment, transportation, trading, and other fuel-related business for both companies, as well as new development or replacement business involving domestic and international power stations. Upon the conclusion of the Agreement, Chubu Electric Power decided to have JERA, a new company established on April 30, 2015, succeed the Business.

2  Summary of company spin-off

The Business covered by Chubu Electric Power will be transferred under a company spin-off (i.e., Absorption-type split where Chubu Electric Power is the company spinning off a business and JERA is the succeeding company).

 Conclusion date of absorption-type split agreement

 July 01,2015 (scheduled)

 General meeting of shareholders deciding whether to approve absorption-type split agreement (JERA)

 the beginning of September ,2015(scheduled)

 Date in which the absorption-type split will take effect

 October 01, 2015 (scheduled)

 Spin-off considerations

 4,500,000 JERA common shares

 Business succeeded by the succeeding company

 Fuel transportation and trading business undertaken by Chubu Electric Power

 Rights and obligations succeeded by the succeeding company

 JERA will succeed Chubu Electric Power's rights and obligations associated with the Business. JERA will not succeed any debts by the Spin-Off.

*Chubu Electric Power will carry out the Spin-Off without approval of the general meeting of shareholders, in pursuant to Article 784, Paragraph 2 (simple spin-offs) of the Company Law.

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