March 14 (SeeNews) - Toshiba Corp. is considering selling a majority stake in Westinghouse Electric, the Japanese nuclear and electronics company said on Tuesday, unveiling intentions that could potentially include the Bulgarian-based unit of the U.S.-headquartered nuclear equipment manufacturer.
Toshiba is looking to eliminate the risk related to the nuclear power business and should discuss reorganization, including deconsolidation by selling a majority stake in Westinghouse, Satoshi Tsunakawa, Toshiba’s CEO, announced at a news conference in Tokyo, according to a video posted on the company's website.
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Toshiba had won approval for a second delay in reporting its earnings for the period October-December 2016, Tsunakawa added.
“We need further reforms to overcome the difficulties resulting from the accounting scandal and losses in the nuclear business,” Tsunakawa said.
The delay in reporting comes as a result of a deeper investigation into Westinghouse's purchase in 2015 of CB&I Stone & Webster, a nuclear construction and services business.
“Based on the recognition of inappropriate pressures, etc. of senior managers found during the process of settlement of accounts for the Third Quarter of the fiscal year 2016 … the Company came to recognize the necessity of further investigation on (former name) CB&I Stone & Webster for the accounting periods other than the Third Quarter of the fiscal year 2016,” Toshiba said in a statement on Tuesday. It did not say what those pressures had been.
In February, Toshiba announced a 712.5bn Japanese yen ($6.19 billion/5.82 million euro) writedown because some of its U.S. nuclear assets were worth less than estimated.
Sofia-based Westinghouse Energy Systems LLC’ core activity includes engineering and supply of control systems and equipment for nuclear power plants, according to data from the Bulgarian commercial registry.
(1 euro = 122.457 yen)