Japanese electronics giant Toshiba Corp. (TOSBF.PK) is in talks to sell as much as 16 percent stake in its Westinghouse Electric atomic-power unit as industry growth slows, media reported Thursday.
The company said it is in discussions with three parties on a possible sale of the stake in the nuclear power plant company. Earlier, in October, Toshiba had said that it received interest from potential partners and was open to talks on condition that it will retain a majority stake in Westinghouse.
It was in 2006 that Toshiba paid $4.16 billion for 77 percent of the nuclear- power services provider. The company now owns 67 percent after it sold 10% stake to Kazakhstan's Kazatomprom in 2007.
Westinghouse is currently constructing four AP1000 nuclear reactors in the U.S. and a further four in China. The company aims to grow its business by expanding its global sales volume.
In October, Toshiba agreed to buy engineering company Shaw Group Inc.'s (SHAW) 20 percent stake in Westinghouse for about 125 billion yen or $1.60 billion after it exercised its put option to sell its stock. The purchase would increase Toshiba's ownership of Westinghouse to 87 percent.
As per reports, the planned sale would allow the firm to offload shares and would reduce Toshiba's exposure to the nuclear industry following Japan's power-plant shutdowns and global growth in alternative energies.
In Tokyo, Toshiba shares rose 10 yen or 3.2 percent to close at 321 yen.
by RTTNews Staff Writer
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