18 March 2005 – Sumitomo Corp. and Electric Power Development Co., known as J-Power, will acquire the Philippine hydroelectric power firm CBK Power Co for 23bn yen ($220m) through their Dutch joint venture, the two Japanese companies said Wednesday.
CBK Power Co., operates hydroelectric power stations in Caliraya, Botocan and Kalayaan in southern Luzon.
Sumitomo and J-Power will acquire an overseas independent hydroelectric power provider for the first time, though both have purchased foreign thermal power plant operators.
The two Japanese firms expect a steady stream of revenue from the deal because CBK Power has a 25-year power supply contract with the Philippine’s National Power Corp. that started in 2001.
CBK Power is a fifty-fifty joint venture between US power supplier Edison Mission Energy and major Argentine group IMPSA, or Indutrias Metalurgicas Pescarmona SAIC.