Wednesday, 15 March 2017 15:52

Toshiba Now Considering Selling Westinghouse

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Executives at Toshiba are now actively considering selling Westinghouse, among other options to deal with the troubled nuclear developer.

The company has expanded a probe into Westinghouse and missed an earnings report deadline for a second time, Reuters reported.

Officials at Toshiba believe it could find buyers for a majority stake in Westinghouse even though it recently lost $6.3 billion. Industry executives believe South Korea’s KEPCO could be a potential buyer. KEPCO indicated it would consider an offer.

However, CEO Satoshi Tsunakawa dodged questions about a potential bankruptcy filing for Westinghouse, indicating only that there are multiple options. Company sources say Toshiba has hired bankruptcy lawyers as an exploratory step.

Even with the extraordinary losses, tied to nuclear project delays, dwindling demand for nuclear and the overvaluation of the purchase of CB&I Stone & Webster, Tsunakawa indicated nuclear construction is only a small part of Westinghouse’s operations.

"Around 80 percent of Westinghouse's revenues come from stable businesses in services and fuel-related businesses so I think that will be taken into consideration too," he said during a news conference.

Toshiba’s goal is to have Westinghouse off its consolidated accounts by the end of the next fiscal year in March 2018.

| A Power Engineering release  |  March 14, 2017  ||