Shaw sells nuclear stake to Toshiba

 
Steve Dinneen
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TOSHIBA will buy out Shaw’s stake in nuclear power plant company Westinghouse Electric, clearing nearly $1.7bn of the US firm’s debt.

Shaw says the sale of its 20 percent stake in the venture will be used to strengthen its balance sheet.

Shares in Toshiba fell more than seven per cent to two and a half year lows yesterday on concerns the chipmaker could be saddled with costs of buying additional shares it agreed in principle to acquire five years ago, before Japan’s worst nuclear disaster put a chill on global demand for new reactors.

Shaw partnered Toshiba and Japanese engineer IHI Corp to buy Westinghouse from British Nuclear Fuels for $5.4bn in 2006. Toshiba bought 77 per cent, Shaw purchased 20 per cent, and IHI three per cent.

Toshiba’s stake in Westinghouse fell to 67 per cent after the company sold part of the stake to Kazakhstan’s state-owned nuclear power company Kazatomprom.

Shaw had an option under the original deal to sell the Westinghouse stake to Toshiba. That option expires in February 2013.