- A consortium of Cameco Corp CCJ and Brookfield Renewable Partners LP BEP, together with its institutional partners, has agreed to acquire Westinghouse Electric Company from Brookfield Business Partners LP BBU.
- Brookfield Renewable will own a 51% stake in Westinghouse, and Cameco will own 49%.
- The total enterprise value of Westinghouse is $7.875 billion.
- Westinghouse’s existing debt structure will remain in place, leaving an estimated $4.5 billion equity cost to the consortium. This equity cost will be shared proportionately between Brookfield and its institutional partners (approximately $2.3 billion) and Cameco (approximately $2.2 billion).
- Cameco’s expertise in the nuclear industry with Brookfield Renewable’s expertise in clean energy makes nuclear power the center of the energy transition.
- The deal is expected to create a powerful platform for strategic growth across the nuclear sector.
- The acquisition is expected to close in the second half of next year.
- Cameco said it has enough liquidity to finance its share of the deal. It plans a bought deal offering to sell $650 million worth of stock, priced at $21.95 a share, according to a regulatory filing.
- Brookfield Business Partners said it expects to generate about $1.8 billion in proceeds from the sale of its 44% stake in Westinghouse. Including distributions, Brookfield Business Partners is expected to log $4.5 billion in total profit from its four-year investment in Westinghouse.
- Price Action: CCJ shares are down 11.9% at $22.74 during the premarket session on the last check Wednesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
