Toshiba clinches $3.7bn deal to sell Westinghouse claims
Wilmington/New York — Toshiba has clinched an agreement to sell its claims in bankrupt US nuclear plant maker Westinghouse Electric in a deal that would add $3.7bn to the Japanese owner’s depleted capital base. The Japanese conglomerate said on Thursday it had also agreed to transfer its Westinghouse-related shares to Canada’s Brookfield Business Partners, which earlier this month agreed to buy the unit for $4.6bn — money that will be used to repay the nuclear plant maker’s creditors. These deals could help clear Westinghouse’s path out of bankruptcy before Toshiba’s financial year ends in March, while also allowing the Japanese firm to resolve its negative net worth and stay listed on the Tokyo Stock Exchange. Toshiba said it would sell its claims against Westinghouse to a group of hedge funds led by the Baupost Group, and that the deal that would contribute about ¥410bn ($3.68bn) to its capital base. The deal, first reported by Reuters earlier in the day, will make the group of he...
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