According to NuScale’s announcement, the transaction has an estimated pro-forma enterprise value of about $1.9 billion. The company foresees up to $413 million of gross cash proceeds at closing, including a private investment in public equity, or PIPE, of $181 million, anchored by Samsung C&T Corporation, DS Private Equity, and Segra Capital Management, with participation by Spring Valley’s sponsor, Pearl Energy.
NuScale intends to use the proceeds to fund the path to the commercialization of its SMR and anticipates no additional capital requirements between closing and achieving positive free cash flow, the company said.
While subject to customary closing conditions, including approval by Spring Valley shareholders, the transaction is expected to close in the first half of 2022.
Official words: “NuScale is building the next generation of nuclear power technology that is safer, more versatile, and more cost-efficient than ever before,” said John Hopkins, NuScale’s president and chief executive officer. “The scale of our ambition is only matched by the world’s enormous decarbonization needs, and now is the right time to accelerate and expand our efforts to bring our trailblazing SMR technology to more customers around the world. Spring Valley will be a highly complementary strategic partner for NuScale as we enter this next phase of growth, with leadership that brings deep expertise in sustainable energy and a strong operating and investment record in the energy sector, including in nuclear power.”
Spring Valley’s CEO, Christopher Sorrells, added, “NuScale is a bellwether company that has developed pioneering technology that can have a transformational impact on humanity by improving the energy sector. . . . This is the rare chance to invest in an industry-defining technology. We are very pleased to partner with NuScale and its deeply knowledgeable management team to bring this critical technology to market.”
Fluor plan: Existing NuScale shareholders, including majority owner Fluor Corporation, will retain their equity in the company and roll it into the combined firm. In addition, Fluor will continue to provide NuScale with engineering services, project management, and administrative and supply chain support.
