Westinghouse’s filing for Chapter 11 bankruptcy protection in the US has triggered Engie’s contractual right to have Toshiba buy its stake in NuGen, which it will now exercise. Toshiba will buy Engie’s 40 percent stake for 15.3 billion yen (£111 million).
While this will leave Toshiba owning all of NuGen the company has made it clear that it is in fact looking to lower its stake in NuGen, which intends to build 3 Westinghouse AP1000 reactors at Moorside, Cumbria. Korea Electric Power Corp (KEPCO) has confirmed that it is in talks to buy a stake in the project.
Toshiba will take a further loss of 49.7 billion yen (£361 million) on the deal with Engie but it is understood that this was already assumed in the company’s estimated 1 trillion yen (£7.3 billion) loss in its last financial year.