Mayer Brown advised Chubu Electric Power Co., Inc. (Chubu) in its acquisition of 20 percent of the ordinary shares in Bitexco Power Corporation (BPC), Vietnam’s leading private renewable power company. The transaction marks Chubu’s first investment abroad in a renewable power company in Asia.
Chubu, one of the largest regional electricity companies incorporated in Japan, is listed on the Tokyo Stock Exchange and Nagoya Stock Exchange, with a market capital of approximately US$8 billion as of November 17, 2021. Chubu currently owns more than 9.1 GW of generation capacity in total, including approximately c5.5 GW of hydropower plants and c.330 MW of renewable power plants including solar and wind.
BPC owns and operates 21 hydropower plants and one solar power plant in Vietnam, with a total gross generation capacity of about 1,038 MW (as of February 2021), making it a leading renewable energy company focused on hydroelectric and solar PV generation in the Vietnam private sector.
Vietnam, where approximately 2,000 Japanese companies have established business activities in as of December 2020, is experiencing remarkable population growth and economic development, and electricity demand is expected to continue to grow.
"It was extremely rewarding to have advised Chubu in its first investment into an overseas renewables company in Asia,” said Rupert Burrows, Mayer Brown's Tokyo office managing partner. “There is a clear trend of investment by our Japanese clients in overseas renewables companies and with our global network of offices and sectoral expertise, we are well positioned to help them as they expand their overseas renewables portfolio investments."
A three-office Mayer Brown team advised on the deal. The M&A transaction was led by partners Rupert Burrows, Gordon Palmquist (both Tokyo) and David Harrison (Ho Chi Minh City). Partner Ben Thompson (Singapore), a recognized market leader for financing hydropower projects in Southeast Asia, advised on the project and financing aspects. Other team members included: senior associate Arnold Itagaki and associate Rio Kamei (both Tokyo), counsel Hai Thao Nguyen, senior associate Orsolya Szotyory-Grove, and associates Qin Sue Koh and Daniel Haberfield (all Ho Chi Minh City).