Japan’s energy company JERA Co has acquired a 22 per cent stake in Summit Power International for $330 million to enable the establishment of major energy infrastructure projects in Bangladesh.

The announcement comes four months after a memorandum of understanding was signed between the companies in Tokyo, the company said in a press statement yesterday.

 The partnership will support Summit Group’s investment plan of $3 billion by 2022 in Bangladesh, Muhammed Aziz Khan, Summit Group’s chairman said in the statement.

International Finance Corp (IFC), IFC Emerging Asia Fund, and United Arab Emirates-based EMA Power Investment, which were shareholders of Summit since 2016, will exit through this transaction, according to the statement. However, IFC will continue to be a large lender to Summit, it added.

Singapore-based Summit Power International is the holding company for all power assets of Bangladesh’s Summit Group, while JERA is a joint venture between Tokyo Electric Power and

As a shareholder of Summit, JERA will strive to increase the corporate value of Summit through the efficient construction and operation of its power generation facilities and contribute to the sustainable economic growth of Bangladesh.

Toshiro Kudama, CEO of JERA Asia, said, “JERA is fully dedicated and committed to the future development and economic growth of Bangladesh through this precious partnership with Summit.”

“We believe that Summit has unrivaled presence and capacity in the country. Thus, we will humbly and steadily provide our support to them in the future. We look forward to working together with Summit in supplying not only reliable electricity but also primary energy sources to the people of Bangladesh,” he further said.

JERA aims for excellence in operations and to that end will support Summit with technical expertise and human resources.

Co-Head of the IFC Emerging Asia Fund, Andrew Yee, said, “It has been a privilege to be a board director of Summit Power International for the last three years and I congratulate Summit on the enormous progress made in that time. Bangladesh has come a long way and it is a pleasure to see new investors recognizing the vast potential offered by this market. We wish Summit and JERA even greater success in the years to come.”

EA