ABB: sells Hitachi stake, provisions Kusile project

(CercleFinance.com) - ABB has reached an agreement to sell its remaining 19.
9% stake in the Hitachi Energy joint venture to Hitachi: note that Hitachi holds an 80.1% stake.

The call option has an exercise value of 1.679 billion dollars. ABB expects positive net cash inflows of approximately 1.425 billion dollars at closing.

The deal will strengthen ABB's balance sheet and give it additional flexibility in its capital allocation decisions, it said.

At the same time, ABB has advanced discussions with the relevant authorities regarding issues relating to the Kusile project in South Africa, awarded in 2015.

ABB will make a non-operating provision of about 325 million dollars, which will be reflected in its Q3 2022 operating result, which it says should be its last such provision.

The company continues to cooperate fully with the respective authorities and expects to reach a final settlement with them in the near term.


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