ML19365A029
| ML19365A029 | |
| Person / Time | |
|---|---|
| Site: | 07007016 |
| Issue date: | 12/17/2019 |
| From: | Jenny P GE-Hitachi Global Laser Enrichment |
| To: | Document Control Desk, Office of Nuclear Material Safety and Safeguards, Office of Nuclear Security and Incident Response |
| References | |
| GLE-2019-0134 | |
| Download: ML19365A029 (2) | |
Text
GIR:BAL Global Laser Enrichment Laser Enrichment GLE-2019-0134 December 17, 2019 Attn: Document Control Desk Director, Division of Security Operations Office of Nuclear Security and Incident Response U.S. Nuclear Regulatory Commission Washington, D.C. 20555-0001 Pat Jenny Security/Licensing Manger 3901 Castle Hayne Road Wilmington, NC 28402-0780 USA T 910 819 7447 F 910 819 5731 C 910 200-0744 pat.jenny@ge.com Docket 70-7016 SNM-2019
Subject:
Update regarding Certificate Pertaining to Foreign Interests for GE-Hitachi Global Laser Enrichment, LLC
Reference:
- 1. Letter, Pat Jenny to Dir., Division of Security Operations (NRC), GLE-2019-0079, Feb. 28, 2019 Pursuant to 1 O CFR 95.17(a)(1 ), GE-Hitachi Global Laser Enrichment, LLC (GLE), as a licensee under Docket 70-7016, SNM-2019, hereby notifies the NRC of a significant change that may affect its status concerning foreign ownership, control, or influence (FOCI). This letter serves to notify the NRC that, effective December 13, 2019, GE and GE-Hitachi Nuclear Energy have entered into a binding agreement to sell their collective 76% interest in GLE to subsidiaries of Cameco Corporation ("Cameco") and Silex Systems Ltd. ("Silex"), subject to U.S. government approval.
On February 28, 2019, GLE previously notified the NRC of the execution of a non-binding Term Sheet1 between the GE Parties2, the Silex Parties3, and the Cameco Parties4, 1 Non-Binding Term Sheet among GENE Holdings, LLC, GE-Hitachi Nuclear Energy Americas LLC, General Electric Company, Cameco Corporation, Cameco Enrichment Holdings LLC, Silex Systems Ltd., and Silex USA LLC, dated as of February 5, 2019.
2 General Electric Company ("GE"), GENE Holdings, LLC ("GENE"), and GE-Hitachi Nuclear Energy Americas, LLC ("GEH")(collectively, the "GE Parties").
3 Silex USA LLC ("Silex") and Silex Systems, Limited ("Silex Ltd.", and together with Silex, the "Silex Parties").
4 Cameco Enrichment Holdings LLC ("CEH") and Cameco Corporation ("Cameco", and together with CEH, the "Cameco Parties").
Global Laser Enrichment SNM-2019, 1097 Docket 70-7016
- t/5 Jf DK
2 whereby Cameco and Silex (via their designated subsidiaries) intend to acquire all of the GE Parties' outstanding equity interests in GLE, subject to U.S. government approvals and other commercial conditions precedent (Reference 1 ). On December 13, 2019, the Term Sheet was superseded by a binding Membership Interest Purchase Agreement (MIPA) between the Parties.
As noted in Reference 1, the GE Parties will maintain majority ownership and control of GLE until the transaction is approved by the U.S. Government and allowed to proceed.
During the period between the signing of the MIPA and the transaction Closing, the Silex Parties and Cameco Parties have agreed to reimburse the GE Parties a fixed amount intended to cover the GE Parties' pro-rata share of the GLE operating budget as established by the GLE Governing Board.
In the upcoming weeks, GLE intends to submit a request for continuance of the facility clearance under the proposed new ownership structure. This request will initiate the discussions on FOCI mitigation measures for the new GLE structure.
If there are any questions regarding this letter and its contents, please do not hesitate to contact me at 910-819-7447 or at pat.jenny@ge.com.
Sincerely, at Jenny Security/Licensing Cc: M. Bartlett (NMSS) NRC D. Hase (NSIR) NRC K. Everly(NSIR) NRC L. Pitts (RII) NRC Global Laser Enrichment SNM-2019 Docket 70-7016