British Energy investors back AmerGen stake sale
LONDON - - Nuclear power firm British Energy said recently investors had backed the sale of its 50 percent stake in U.S. nuclear plant owner AmerGen Energy, raising much needed cash for the UK's biggest power producer.
The provider of a fifth of Britain's electricity, surviving on a state loan after weaker power prices forced its high-cost operation towards insolvency last year, confirmed it would receive about $277 million of cash from the sale.
"The proceeds, net of transaction costs and break fee, are expected in the first instance to be used to repay outstanding sums made available to British Energy under the UK government credit facility," the firm said in a statement.
British Energy paid off a 650 million pound ($1.2 billion) loan from the UK government in March by selling assets. But ministers then provided a 200 million pound facility, and the firm asked for more money in November 2003 to cope with problems at two of its atomic reactors and volatile power prices.
In October, U.S. nuclear plant operator Exelon Corp , which already owned 50 percent of AmerGen, said it would buy out British Energy's 50 percent stake. British Energy said recently the deal would close within the next few days.
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