Cameco, Brookfield Renewable Come Together To Buy One Of Largest Nuclear Services Businesses

  • 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.
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