British government to sell stake in Urenco

The British government announced this week it will sell its one-third stake in uranium enrichment company Urenco.

The company is jointly owned by the UK, Dutch and German governments and the total sale is worth a potential $13.7 billion, according to the Telegraph.

All three public partners have agreed to sell their respective stakes to private buyers.

For the UK, it's part of its plan to cut public debt, although it says it won't sell if the deal doesn't meet its security and non-proliferation interests.

Urenco enriches uranium for about 50 customers in 18 countries. Last year, its net income rose 12% to $522 million from revenues that were up 23% at $2 billion. Company cash flows looks good to 2025 and beyond as it has orders booked for $23.4 billion during that time.

Potential buyers include France's Areva, Canadian uranium processor Cameco as well as Japan's Toshiba and Hitachi.

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