Global engineering firm Shaw Group Inc have exercised its option to sell its 20% stake in nuclear producers Westinghouse back to Toshiba Corp for $1.6bn. Westinghouse have made a statement declaring that they would continue to work with Shaw and normal construction will carry on.
Shaw said the sale will reduce their debt: “Since the acquisition, the yen-denominated debt has increased by approximately $600 million to a total of almost $1.7 billion.”
J.M. Bernhard Jr., Shaw’s Chairman, President and Chief Executive Officer, said: “We firmly believe that exercising the put options is in the best interest of our shareholders and our future business opportunities. It will eliminate almost $1.7 billion of debt, further strengthening our balance sheet.”
Westinghouse were positive about the global future of nuclear power. Dr. Aris S. Candris, President and CEO of Westinghouse said: “Westinghouse continues to believe that the future of the nuclear energy industry is robust, and that a significant number of additional new construction projects around the world will be announced over the next few years.”
The acquisition of Shaw’s stake in Westinghouse by Toshiba increases Toshiba’s ownership position to 87%.
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