Korea Electric Power Corp (Kepco) is in talks to buy Toshiba's stake in its UK nuclear joint venture, NuGen

Courtney Goldsmith
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Struggling Toshiba has missed the deadline to post its financial results twice (Source: Getty)

Korea Electric Power Corp (Kepco) has revealed it is in talks to buy a stake in NuGen, a nuclear joint venture between Toshiba and Engie that's building three reactors in Britain.

NuGen's new build at the Moorside site on the coast of Cumbria plans to generate electricity by 2025, but Toshiba's troubled past few months has called its ability to hit deadlines in the UK into question.

Read more: Toshiba misses another results deadline

The chief executive of Kepco, Cho Hwan-eik, told reporters the South Korean company is interested in taking over Toshiba's 60 per cent stake in NuGen and has started informal negotiations.

"We will jump into [the deal] most quickly once its debt, equity structure is determined," Cho said, adding that nothing was formalised.

Reports of Kepco's interest in NuGen was reported late last year.

Toshiba is working to fill a multi-billion pound hole due to cost overruns at its US nuclear arm, Westinghouse.

The troubled Japanese conglomerate is taking offers for a financing package to help it through a US bankruptcy, Reuters reported.

The financing package is expected to exceed $500m and would allow Westinghouse to pay for the four nuclear power plants it’s building in Georgia and South Carolina.

Kepco's Cho ruled out the possibility of buying Toshiba's stake in Westinghouse.

Toshiba has twice delayed reporting its financial earnings and is looking to sell some or all of its prized memory chip business to bolster its balance sheet.

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