Monthly Report

Tokyu Land set to acquire and delist Renewable Japan through management buyout

November 15, 2024
Renewable Japan
Renewable Japan is primarily involved in solar power business. (Image: Renewable Japan)

On November 14, 2024, Tokyu Land announced it will acquire Renewable Japan, a major renewable developer and services provider listed on the Tokyo Stock Exchange, through a management buyout (MBO) with the company’s President and Representative Director Katsuhito Manabe in a deal valued at approximately 30 billion yen ($190 million).

Tokyu Land, currently owning approximately 16% of Renewable Japan, issued a tender offer lasting until January 8, 2025, to purchase up to just under 50% of Renewable Japan’s issued shares at 1,250 yen per share, or 2.3 times the 538 yen per share November 14, 2024, closing price. The company will also acquire all shares (approximately 37%) held by Manabe’s company H&T. With that, the remaining shareholders will be squeezed-out and forced to sell.

Once Renewable Japan becomes Tokyu Land’s wholly-owned subsidiary and is taken private, Manabe will reacquire 15% of the company and continue to run it.

Tokyu Fudosan first established a partnership with and invested in Renewable Japan in 2017. The upcoming acquisition, which comes amid Japan’s transition from the feed-in-tariff (FIT) subsidy scheme to the more complex feed-in-premium (FIP) scheme, will allow Tokyu Land to directly expand its renewable generation business and enter the operation and management (O&M) services business.

As of the end of September 2024, Renewable Japan’s domestic portfolio included 292.4MW of solar power plants under the FIT scheme, 10.6MW of wind and hydro projects, and 29MW of non-FIT solar projects alongside a 52.8MW overseas portfolio. The company also had 2.3GW worth of O&M contracts including those for the power plants in its portfolio.

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