Shaw exits Westinghouse

Wednesday, 7 September 2011

Shaw is selling its 20% stake in Westinghouse back to Toshiba to reduce debt and foreign exchange exposure. The Japanese majority owner is "open" to the idea of new investors.

Shaw is selling its 20% stake in Westinghouse back to Toshiba to reduce debt and foreign exchange exposure. The Japanese majority owner is "open" to the idea of new investors.听

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One of Shaw's projects with Westinghouse: pouring first concrete
for an AP1000 unit at Sanmen, China, in March 2009

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Shaw's option to trigger the sale was part of a deal struck with Toshiba during its $5.4 billion purchase of Westinghouse from the UK's former national nuclear company, BNFL, in October 2006.

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Toshiba immediately sold on 20% of Westinghouse to Shaw, which financed that by issuing yen-denominated bonds. The arrangement between the firms included a 'put option' under which Shaw could call on Toshiba to buy back the stake at any time before October 2012, at which time it would be exercised automatically.

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Shaw said yesterday it was exercising the option in order to reduce its exposure to the sliding dollar-yen exchange rate. The dollar value of the debt had grown by "over $600 million to a total of almost $1.7 billion," it said. At the time the deal was agreed, $1 would buy about 楼116, but the figure is only 楼77 today.

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Separate statements from all parties emphasised their commitment to continue working together on the four Westinghouse reactors under construction in China and the four at the groundwork stage in America.

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Toshiba said that Shaw would be considered for future plant construction and engineering projects and a "collaborative relationship" would be maintained. However, other partners could be selected on a project-by-project basis. "This is particularly the case of the projects in Europe, South America and India, where Westinghouse may be required to allow local companies to participate."

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Assuming appropriate consents for the transaction are obtained, some 87% of Westinghouse will be held by Toshiba within 90 days. Ten percent is held by uranium and rare-earth metals producer KazAtomProm, and 3% by component-maker IHI.

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Toshiba said it "remains open" to the idea of inviting other firms to invest in Westinghouse "if such potential investors could share a long-term vision and business strategy." It noted that "several companies have already expressed an interest in investing in the company."

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Researched and written
by 抖阴传媒在线 Nuclear News
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