The Tokyo Electric Power Company, Incorporated
Toshiba Corporation
The Japan Bank for International Cooperation
Tokyo - The Tokyo Electric Power Company, Incorporated (TEPCO) (TOKYO: 9501), Toshiba
Corporation (Toshiba) (TOKYO: 6502), and the Japan Bank for International Cooperation
(JBIC), the international wing of the Japan Finance Corporation, today announced a joint
investment in Uranium One Inc. (U1) (UUU.TO), a major, Canadian-listed producer and
marketer of uranium. TEPCO, Toshiba and JBIC have agreed to subscribe to a new share issue
of 117 million shares in U1, at a price of Cdn$2.30 per share, equal to approximately
Cdn$270 million (about 20.2 billion yen(1)) in total. Concurrently, TEPCO, Toshiba and
JBIC have also signed a strategic relationship agreement (SRA) with U1, and a Uranium
Offtake Agreement.
The full share issue will be taken up by Japan Uranium Management Inc. (JUMI), a special
purpose entity established by the three Japanese companies in British Columbia, Canada.
Once JUMI completes the transaction, U1's outstanding shares will total 586.61 million,
and JUMI will have a holding of about 19.95%. TEPCO and Toshiba will each hold 40% of
JUMI's shares, and JBIC will hold 20%.
In order to further deepen and develop their long-term strategic relationship with U1,
the three Japanese companies intend to appoint two representatives to serve on U1's
board, and to send other personnel to the company; establish a joint committee to discuss
strategic issues; and evaluate opportunities to jointly develop uranium resources. The
Japanese companies and U1 will together develop and execute detailed action plans based
on the SRA.
TEPCO operates a large scale nuclear generation program in Japan, and pursues economically
efficient means to optimize its uranium procurement, including diversification of procurement
channels, and will continue to enhance its fuel procurement activities, especially in
front-end domains.
Toshiba strives to take advantage of every opportunity to promote initiatives and programs
to satisfy demand for uranium for the Group's utility customers on a global basis.
JBIC aims to support activities to secure uranium resources for Japan and to maintain and
improve international competitiveness within the nuclear industry of Japan. From this
perspective, JBIC supports this first-ever equity investment by Japanese companies in a
major uranium company as a joint investor, and seeks to sustain U1's businesses by drawing
on its own experience and capabilities, based on an existing relationship, to have dialogue
directly with Kazakhstan where U1 has mining sites.
Note:
(1): Calculated at an exchange rate of 75 yen to the Canadian dollar for convenience only.
Appendices:
Figure: New Shares Allocation to Third Parties by Uranium One (PDF 57.4KB)
Annex: Company profiles (PDF 50.9KB)