Nuclear Energy Holdings not given consent for early exercise of put options

The Shaw Group Inc. (NYSE: SHAW) said its subsidiary, Nuclear Energy Holdings L.L.C., did not receive consent from the bondholder trustee to the early exercise of its put options to sell its investment in Westinghouse back to Toshiba Corp.

As previously disclosed, under the terms of the original agreement, the put options likely will be exercised automatically on Oct. 6, 2012, for cash settlement on Jan. 4, 2013. Proceeds from the sale would be used to repay the bonds in full on their scheduled maturity date of March 15, 2013.

Nuclear Energy Holdings received the put options in connection with its 2006 acquisition of 20 percent of the shares in the companies referred to as the Westinghouse Group. Details of the transaction are outlined in Shaw’s Form 10-K filing from Aug. 31, 2011.

While the sale of Nuclear Energy Holdings’ investment in Westinghouse terminates the formal contractual arrangement between Shaw and Toshiba, Shaw said it looks to continue the successful global cooperation that Shaw, Westinghouse and Toshiba have demonstrated. Shaw and Westinghouse currently are under contract for six new AP1000 nuclear power units in the U.S., as well as four units under construction in China. In addition, Shaw has a contract for technical support services on an additional two-unit AP1000 project in China that follows the original units at Sanmen and Haiyang.

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