The owners of an unfinished nuclear power plant in South Carolina have agreed to sell at a discount their shares of a $2.17 billion settlement with Toshiba Corp., which agreed to cover costs for the project which was canceled over the summer.
Utility holding company Scana Corp. SCG, -7.83% and state-owned utility Santee Cooper said Wednesday they have sold the bulk of their financial interests in the settlement to Citigroup Inc.’s C, +1.89% Citibank N.A. for $1.847 billion. The deal is related to unfinished reactors at the V.C. Summer Nuclear Station in Jenkinsville, S.C.
The agreement with Citibank doesn’t include a $150 million payment Toshiba is scheduled to make in October to Santee and Scana subsidiary South Carolina Electric & Gas Co. All told, Citibank is paying just over 91 cents on the dollar to acquire the settlement, the utilities said.
The deal was born out of the financial difficulty of Toshiba 6502, +0.00% subsidiary Westinghouse Electric Co. which was building the reactors but filed for bankruptcy in March in part because of significant cost overruns at V.C. Summer and a similar nuclear project owned by Southern Co. SO, -0.55% in Georgia. Toshiba guaranteed Westinghouse work on both projects.
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