Toshiba purchases Kazatomprom's stake in Westinghouse Electric

Business Materials 25 December 2017 16:24 (UTC +04:00)
Toshiba purchases Kazatomprom's stake in Westinghouse Electric

Baku, Azerbaijan, Dec. 25

By Nigar Guliyeva – Trend:

Toshiba Corporation bought back from Kazatomprom National Atomic Company of Kazakhstan 10 percent stake in Westinghouse Electric Company, in accordance with the terms of the "Put Option Agreement” between the two companies, the Kazakh company reported.

Earlier this year, Kazatomprom exercised its rights under the put option, and received a payment of $ 522 million for its shares in Westinghouse on Dec.25.

Combined with dividends received during its ownership of Westinghouse shares of $103 million, the total return on Kazatomprom’s invested funds amounts to $ 625 million, which exceeded the initial investments in Westinghouse Electric Company's shares by $ 85 million.

Kazatomprom acquired shares of Westinghouse in 2007 from Toshiba for $540 million. According to the terms of that deal, Kazatomprom had the right to sell its shares back to Toshiba at a fixed price of $ 522 million under the Put Option Agreement.

In March 2017, American company Westinghouse (subsidiary of the Japanese corporation Toshiba) filed a petition for bankruptcy proceeding in accordance with Article 11 of the US Bankruptcy Code.

Toshiba originally sold the Westinghouse shares as part of its global strategy on nuclear power.

Kazakhstan has one of the world's largest uranium reserves. Kazakhstan owns 15 percent of the world's uranium resources and an expanding mining sector.

In 2009, it became the world's leading uranium producer, with almost 28 percent of world production, then 33 percent in 2010, rising to 41 percent in 2014, and going to 39 percent in 2015 and 2016.

Kazakhstan does not have its own nuclear power plants and does not consume nuclear cycle products.