Cameco, Brookfield Renewable To Buy Westinghouse Electric For Total Enterprise Value Of $7.875 Bln

(RTTNews) - Cameco Corporation (CCJ, CCO.TO) and Brookfield Renewable Partners (BEP, BEPC,BEP_U.TO, BEPC.TO), agreed to acquire Westinghouse Electric Company, nuclear services businesses, for the total enterprise value of $7.875 billion.

Westinghouse's existing debt structure will remain in place, leaving an estimated $4.5 billion equity cost to the consortium, subject to closing adjustments.

Brookfield Renewable, with its institutional partners, will own a 51% interest in Westinghouse and Cameco will own 49%.

Closing is anticipated in the second half of 2023.

In a separate press release, Cameco said that it has entered into an agreement with a syndicate of underwriters led by CIBC Capital Markets and Goldman Sachs & Co. LLC, pursuant to which the underwriters have agreed to purchase, on a bought deal basis, 29.62 million common shares of Cameco at a price of $21.95 per share, for gross proceeds of approximately $650 million. The Offering is expected to close on or about October 17, 2022.

Additionally, Cameco has granted the underwriters an option to purchase up to an additional 4.44 million common shares at the Offering Price, exercisable in whole or in part at any time up to 30 days following the closing of the Offering, for potential additional gross proceeds to Cameco of approximately $97.5 million.

Cameco plans to use the aggregate proceeds from the Offering to partially fund its share of the acquisition of Westinghouse Electric Company.