Toshiba will sell nuclear power plant Westinghouse.

Toshiba Corp (T:6502) will sell its majority stake in U.S. nuclear unit Westinghouse.This movement on the stock market it is caused by the problems to reach earnings targets.Despite the potential for future losses as the unit had a stable fuel and services business,the Japanese giant said it believed it could find buyers for a majority stake in Westinghouse.
Satoshi Tsunakawa,chief executive,sidestepped questions about a potential Chapter 11 filing for Westinghouse.The sale represent the latest in a series of drastic steps as Toshiba focused with the multibillion dollar financial maelstrom from Westinghouse’s purchase of a U.S. nuclear power plant construction company.
An estimate of 6.3 billion dollars is been writendown for the nuclear business.Despite attractive technology,two US projects in Georgia and South Carolina,brought Westinghouse down by huge cost overruns and liabilities related to those projects mean it is unlikely to be an easy asset to sell.
Tsunakawa told a news conference:“Around 80% of Westinghouse’s revenues come from stable businesses in services and fuel-related businesses so I think that will be taken into consideration too.Toshiba aims to have Westinghouse off its consolidated accounts by the end of the next financial year in March 2018.”