Kazatomprom sells stake in ailing Westinghouse
Kazakhstan’s National Atomic Company Kazatomprom Jsc said on Monday it received $522 million for its 10% share in Westinghouse Electric Co. The holding in Toshiba Corp.’s bankrupt nuclear unit in the United States was bought back by the Japanese electronics manufacturer after the minority partner exercised a put option earlier in the year, the press release said.
The utility from the Central Asian nation estimated it profited $85 million in total, excluding the impact of inflation, as it also received dividends of $103 million. Kazatomprom entered ownership in 2007, with a clause enabling exit for a fixed price. Westinghouse has filed for protection against creditors in March under the provisions of article 11, setting in motion emergency restructuring efforts in Toshiba.
To recall, Kazatomprom acquired shares of Westinghouse in 2007 from Toshiba for US$ 540 million. According to the terms of that deal, Kazatomprom had the right to sell its shares back to Toshiba at a fixed price of US$ 522 million under the Put Option Agreement.
In March 2017, American company Westinghouse (subsidiary of the Japanese corporation Toshiba) filed a petition for bankruptcy proceeding in accordance with Article 11 of the US Bankruptcy Code.