Korea Electric Power, or Kepco, said on Thursday its President Cho Hwan-eik would resign tomorrow, with the news coming a day after the state-owned utility was awarded preferential negotiation rights for the purchase of Toshiba's nuclear power business in the United Kingdom.
Toshiba Corp., which has a 60 percent stake in the NuGen consortium in charge of building the nuclear power plant in Cumbria, northwest England, plans to announce soon that KEPCO has become the preferred bidder, according to industry insiders, who wanted to remain anonymous.
NuGen wants to build a nuclear power station at Moorside next to the Sellafield site.
The KEPCO and Toshiba are going to move ahead with negotiations for share acquisition for months to come.
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"I am happy to resign after KEPCO won the contract for the export of nuclear reactors", Cho said in a statement. The GDA approval process typically takes about four years.
Toshiba said in a brief comment to Yonhap News Agency that the company has chosen KEPCO as its preferred bidder, but it declined to give any further details. "NuGen and its shareholder Toshiba are exploring a range of options for funding the Moorside project, which includes Toshiba selling some or all its shareholding in NuGen", he added.
Toshiba put NuGen up for sale as part of a wider restructuring caused by the crisis stemming from the losses in its Westinghouse U.S. nuclear division. Britain needs to invest in new capacity to replace ageing coal and nuclear plants that are due to close in the 2020s, but large new plants have struggled to get off the ground due to high costs and weak electricity prices.