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Toshiba:Notice on Acquisition of Kazatomprom’s Stake in Westinghouse
Source: Toshiba   Editor: Helan   Update Time :2017/10/9 22:13:36

        TOKYO– Toshiba Corporation (TOKYO: 6502) has received a notice from Kazatomprom, a Kazakh state-owned company, dated October 2, 2017, exercising put options for the sale of all shares that Kazatomprom owns (10% ownership) in the holding companies for Westinghouse Electric Company and its group entities (collectively WEC).
        Following the acquisition of Kazatomprom’s stake, Toshiba will own all of WEC’s shares. However, as Toshiba announced on March 29, 2017 in “Notice on Chapter 11 Filing by Westinghouse Electric Company and its Group Entities,” WEC filed a voluntary petition with the U.S. Bankruptcy Court of New York on March 29, 2017, under Chapter 11 of the U.S. Bankruptcy Code. As a result, WEC Group is no longer under the control of Toshiba, and was deconsolidated from Toshiba's FY2016 full year business results.
        The Outline of Kazatomprom’s put option
        Currently, Toshiba holds 90% of WEC’s shares and Kazatomprom holds the remaining 10%. As a minority shareholder, Kazatomprom is entitled to sell its holding to Toshiba under certain conditions, pursuant to put option agreements that can be exercised on or after October 1, 2017. Kazatomprom has decided to exercise these rights.
        Toshiba’s Purchase Price, Date of Payment and Share Acquisition
        Toshiba’s Purchase Price
        Approx.59.0 billion yen (Approx. US$522 million)*1
        *1 The purchase price is calculated at the prevailing currency exchange rate for         September 2017, approx. 113 yen to the US dollar.
        Date of payment and share acquisition
        Date of payment: date of share acquisition (Planned) Date of share acquisition: January 1, 2018 (Planned)*2
        *2 Pursuant to the agreements, Kazatomprom can set a closing date for the purchase that is no sooner than 90 days from Toshiba’s receipt of Kazatomprom’s notice of the exercise of the options.
        Future Outlook
        The exercise of put option rights by Kazatomprom will have a negative impact on Toshiba’s consolidated profit and loss, stemming from a 15.3 billion yen impairment of the investment, and a total negative impact of 64.6 billion yen on shareholders’ equity in Toshiba’s consolidated balance sheet, including the aforementioned impact and the change in shareholding resulting from additional purchases of shares of consolidated subsidiaries. Toshiba has already made provision for both of these impacts in its FY2017 forecast,statements of operations.

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