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Kazatomprom Sells 10-percent Stake in Westinghouse Electric
Dec. 25, 2017 04:41PM PST
Energy InvestingKazatomprom announced that it has sold back its 10-percent stake in Westinghouse Electric Company LLC to Toshiba Corp. (TSE:6502). The sale was made in accordance with the terms of a “put option agreement” between the two companies.
Kazatomprom announced that it has sold back its 10-percent stake in Westinghouse Electric Company LLC to Toshiba Corp. (TSE:6502). The sale was made in accordance with the terms of a “put option agreement” between the two companies.
As quoted in the press release:
Earlier this year, Kazatomprom exercised its rights under the put option, and today received a payment of US$ 522 million for its shares in Westinghouse.
Combined with dividends received during its ownership of Westinghouse shares of US$ 103 million, the total return on Kazatomprom’s invested funds amounts to US$ 625 million, which exceeded the initial investments in Westinghouse Electric Company’s shares by US$ 85 million.
To recall, Kazatomprom acquired shares of Westinghouse in 2007 from Toshiba for US$ 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 US$ 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.