Renova Shares Jump After News That Tokyo Gas Plans to Acquire Stake
By Kosaku Narioka
Renova Inc. shares rose sharply following news that Tokyo Gas plans to acquire a 13% stake to help fund the development of renewable-energy and storage-battery projects in Japan and abroad.
Shares were recently 16% higher at 1,438 yen on Tuesday morning after rising as much as 17% earlier. Tokyo Gas shares were down 0.5%.
The Japanese renewable-energy startup said Monday after market close that Tokyo Gas would acquire 11.9 million new shares for Y17.82 billion ($117.5 million), or at Y1,500 apiece.
Renova, which runs solar, biomass and geothermal power projects and entered the storage-battery business last year, said Tokyo Gas's power off-take and supply-demand balancing capabilities, backed by its extensive customer network, would contribute to expansion of its business.
The renewable startup said it would use proceeds to invest in solar, wind and storage-battery projects at home and overseas.
Tokyo Gas will become the second-largest shareholder after Yosuke Kiminami, founder and chief executive officer, who will hold a 16% stake in the company following the new share issuance, Renova said.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
April 01, 2024 22:25 ET (02:25 GMT)
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