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Second Japan nuclear operator to get government bailout: Nikkei

Published on Apr 1, 2014 9:08 AM

TOKYO (REUTERS) - Hokkaido Electric Power Co, facing a third year of financial losses, will get a capital infusion from a state-owned lender, the Nikkei reported on Tuesday, the second nuclear operator to be bailed out since the Fukushima crisis.

The government-owned Development Bank of Japan will buy about 50 billion yen (S$610 million) of preferred shares in the regional utility, equal to about 20 percent of shareholder equity, the Nikkei reported, without citing sources.

Hokkaido Electric, which is the regional monopoly that supplies power to the country's northernmost island of the same name, is looking into the report, a spokesman said.

Tokyo Electric Power Co (Tepco) was bailed out by the government in 2012, after an earthquake and tsunami hit its Fukushima Daiichi nuclear plant north of Tokyo the previous year, causing the worst atomic crisis since Chernobyl in 1986.

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