Toshiba ups its Westinghouse stake to 87%

Kyodo, AFP-JIJI

Toshiba Corp. said Monday it has boosted its stake in U.S. nuclear equipment maker Westinghouse Electric Co. to 87 percent from 67 percent by acquiring a stake held by a U.S. engineering firm for ¥125 billion.

Toshiba bought the stake from Nuclear Energy Holdings L.L.C., a wholly owned unit of The Shaw Group Inc. of the U.S., on Friday because Nuclear Energy exercised its option to sell its 20 percent stake in Westinghouse, it said.

Toshiba used cash and loans to buy the shares.

Last month, Toshiba said it was in talks with three parties about selling a stake of up to 16 percent in Westinghouse, while keeping its majority stake.

On Monday, Toshiba said it “is considering welcoming new investment partners on the premise that we hold a majority share in Westinghouse.”

The firm’s statement added that partners would be chosen based on “whether we would be able to share visions and long-term business strategy, whether synergy effect with Westinghouse is expected, and an appropriate estimate of Westinghouse’s corporate value is provided, among others.”

Japanese firms have been looking overseas after demand for new nuclear plants was dented by the Fukushima triple-meltdown disaster, which started in 2011.