Tokyo Gas to demerge electric power business to subsidiary

Tokyo Gas announced today that it will conduct a simplified absorption-type demerger of its electric power generation business at the Sodegaura Power Plant into its wholly-owned subsidiary, Tokyo Gas Colza Power Co., Ltd. The move, approved and signed on April 25, 2025, aims to consolidate resources and streamline Group operations. Under the agreement, Tokyo Gas Colza Power will assume the relevant assets, rights, and obligations of the Sodegaura plant, with a book value of JPY14,769 million, and assume the debt, without recourse to the demerged company. Tokyo Gas will remain the sole shareholder of Colza Power with 100,000 shares issued. The company expects the demerger to have a minor impact on its consolidated financial results.