Toshiba was brought to its knees by delays and costs in building two reactors at the Vogtle plant in Georgia Georgia Power Reuters
The $4.6-billion acquisition of Westinghouse Electric Co.by Brookfield Business Partners LP has come just in time for India, which has chose to push ahead with its planned collaboration with the formerly Toshiba-owned company, for the construction of six nuclear reactors.
Brookfield Business Partners was an investor in the bankrupt power producer that emerged from Chapter 11 and became Vistra Energy Corp.
The deal would be funded with approximately $1 billion of equity, approximately $3 billion of long-term debt financing and the balance by the assumption of certain pension, environmental and other operating obligations.
Officials at Brookfield Business Partners said on Thursday they would acquire Westinghouse for 4.6 billion dollars. Toshiba did not immediately respond to requests for comment.
The demise of Westinghouse was a major setback for the country's nuclear industry, potentially dooming new nuclear build in the U.S. Problems with its AP1000 nuclear reactor models led to two major nuclear projects falling behind schedule and mounting costs. And in November, Brookfield Property Partners offered to buy the remaining shares in General Growth Properties, adding to a large stake it purchased to bring the mall owner out of bankruptcy. Toshiba bought the company for $5.4 billion in 2006, aiming to capitalise on what was then expected to be a renaissance in the U.S. nuclear sector.
One of Westinghouse's unfinished USA projects, known as Vogtle in Georgia, will continue with Southern Co replacing the company as the project manager.
Westinghouse had backed out of the two US projects after it filed for Chapter 11, setting off a chain of events for the utilities involved. Instead, delays and overruns led to troubles that left Westinghouse's former parent, Toshiba Corp., fighting for survival a year ago after writing down the value of the unit by billions.
Toshiba said Friday its nuclear power unit, Westinghouse Electric, will move toward rehabilitation under USA bankruptcy procedures. Four research analysts have rated the stock with a buy rating, Brookfield Business Partners L.P. Limited Partnership Units now has a consensus rating of "Buy" and a consensus price target of $29.66.
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