The Japanese industrial conglomerate Toshiba completed the acquisition of Engie's share in their joint venture (JV) NuGeneration (NuGen). Toshiba, which is in a difficult situation because of Westinghouse's setbacks, was forced by Engie to buy back the 40% of NuGen and is now its sole owner of the nuclear project. The withdrawal of Engie in NuGen deepens doubt over the project viability and Toshiba will need more investors and partners to join the US$15bn - US$20bn project or could be forced to sell it out as well.
Based on the current shareholding agreement, Toshiba will have to pay Yen15.86bn (£108.8m or US$142m) for the stake purchase but the company forecasts a Yen3.6bn (US$32m) decrease in consolidated shareholders' equity and expects the total transaction impact to amount Yen19.46bn (US$174m). Toshiba said it had already provisioned Yen45bn on its financial estimates for 2016/17 (completed in March) but for which the group has so far been unable to publish definitive results because of the auditors' lack of approval regarding the impact calculation of Westinghouse's losses. Toshiba is still threatened with a pure and simple demotion from the Tokyo and Nagoya Stock Exchanges. It benefits from a grace period until March 2018 and is now struggling to clean up its accounts by selling assets and reducing its nuclear activities, except in Japan.
NuGen is in charge of developing three Westinghouse AP1000 nuclear reactors of 1,200 MW each in Moorside, in West Cumbria (United Kingdom). NuGen signed a land contract with the NDA for Moorside in 2014. The final investment decision is expected by end-2018 for a planned commissioning in 2025-2027.
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