The News That Matters about the Nuclear Industry Fukushima Chernobyl Mayak Three Mile Island Atomic Testing Radiation Isotope

UK to sell out of nuclear power company URENCO

Nuclear sale set to net billions for UK  The Government is holding a “beauty parade” for bankers to advise it over a potential sale of the UK’s multi billion-pound stake in nuclear power giant Urenco. Telegraph UK,  By Emma Rowley, Rowena Mason, and Helia Ebrahimi  15 Jul 2012
The move marks a step towards a deal that could net British taxpayers
as much as £3bn, according to estimates that value the entire company
at £8bn-£10bn.
Urenco, headquartered in Buckinghamshire and registered in the UK, is
one third owned by the Government, with the rest split between the
Dutch government and two major German utilities, Eon and RWE.
Financial advisers have been invited to tender to advise the UK as it
carries out discussions with the Netherlands and Germany over a
potential sale.
The beauty parade is likely to include Goldman Sachs, Rothschild, JP
Morgan and UBS. The UK’s advisers are expected to be appointed within
five to six weeks.
Credit Suisse is acting for the Dutch government, while Bank of
America Merrill Lynch is acting for the German companies, which are
both under huge pressure to offload assets and repay debts……
Security considerations around a sale are high, given Urenco’s main
business is enriching uranium to provide fuel for nuclear power
utilities around the world. The UK must also discuss with Germany and
the Netherlands how to keep meeting “non-proliferation” obligations,
designed to prevent the spread of nuclear weapons.
Theoretically, just one of the shareholders could exit its stake, but
it is seen as more likely that all three factions sell out, if at all.
Possible buyers include Japanese-owned nuclear constructor
Westinghouse, pension funds or sovereign wealth funds.
An IPO is also an option.
With all shareholders now acquiring advisers, negotiations are looking
likely. But the political considerations around a potential sale –
which has been in the works for years – remain major. September’s
elections in the Netherlands and the German general elections next
year could both have an impact on a potential disposal……

July 16, 2012 - Posted by | business and costs, UK


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: