Nuclear partnership ends between Shaw and Westinghouse

The Shaw Group Inc. (NYSE: SHAW) said its special purpose unit, Nuclear Energy Holdings L.L.C. (NEH), will sell its 20 percent investment in Westinghouse back to Toshiba Corp. for a gain of around $545 million.

Nuclear Energy Holdings received the put options in connection with its 2006 acquisition of 20 percent of the shares in the companies that made up the Westinghouse Group. The put options require Toshiba to buy the shares at a price not less than 96.7 percent of the principal amount of the bonds. Nuclear Energy Holdings will fund up to the 3.3 percent shortfall of the principal amount of the bonds, around $55.4 million on Aug. 31. Shaw may recognize a non-operating gain once the put options are settled resulting principally from foreign exchange movements.

Under terms of the put option agreements, if consent to redeem the bonds early is not granted, the put options will be exercised automatically on Oct. 6, 2012.

Shaw and Westinghouse hope to build six AP1000 nuclear units in the U.S. and have four AP1000’s under construction in China. In addition, Shaw has a contract for technical support services on an additional two-unit AP1000 project in China.

Subscribe to Nuclear Power International magazine

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...