28 November 2017
The sale of Toshiba Corporation's 70% holding in Italian heavy equipment manufacturer Mangiarotti SpA to Westinghouse UK Holdings Ltd has been completed after receiving approval by the US Bankruptcy Court of New York. Toshiba has written off EUR110 million ($128 million) of debts owed to it by Mangiarotti as part of the transfer.
Westinghouse Electric Company in September 2014 acquired Mangiarotti, which manufactures components for the energy and process industries, including nuclear island equipment, pressurisers, steam generators and heat exchangers. Westinghouse's parent company, Toshiba, in June 2015 acquired 70% of Mangiarotti, the remaining 30% being retained by Westinghouse.
Toshiba on 31 October announced it had agreed to sell its stake in Mangiarotti to Westinghouse UK Holdings for EUR1.00 ($1.16), with Mangiarotti to be deconsolidated from Toshiba Group after the transfer. As a result, Toshiba said it would incur non-operating losses including a JPY2.9 billion ($26 million) loss before income taxes for the third quarter of FY2017, ending 31 March 2018; an expected impact of the equivalent amount in its October 2017 business results forecast; and a write-off of JPY14.6 billion in the third quarter of FY2017. The company said it had made provision for these amounts and the impact on Toshiba's non-consolidated business results for FY2017 would therefore be limited.
A transaction whereby Toshiba agreed to acquire Westinghouse UK Holding's 52% stake in Japan's Nuclear Fuel Industries for $1.00, also announced on 31 October, is still being executed, Toshiba said.
Westinghouse Electric Company filed for Chapter 11 bankruptcy protection with US courts in March and is undertaking strategic restructuring, as a result of "financial and construction challenges" in its two US projects to construct AP1000 power plants.
Researched and written
by World Nuclear News