Companies

Alstom considering GEbid for energy business

Navadha Pandey New Delhi | Updated on March 12, 2018 Published on April 30, 2014

French company Alstom on Wednesday said that it is considering US company General Electric’s (GE) offer to purchase its energy business. It has set up a committee to review the offer.

In a statement, the company confirmed that its board of directors had received a binding offer from GE to acquire its energy activities.

The scope of the transaction includes thermal power, renewable power and grid power, as well as corporate and shared services. It has received a declaration of interest from Siemens, for an alternative transaction, the statement said. Siemens will have a fair access to information needed to make, should it decide to do so, a binding offer, it said.

The board has decided to set up a committee of independent directors to review the proposed sale by May-end, taking into consideration all stakeholders’ interests, including the French State.

With 65,000 employees, these businesses registered €14.8 billion in sales in fiscal year 2012-13.

The proposed price is a fixed price representing an equity value of €12.35 billion and an enterprise value of €11.4 billion.

If the offer is accepted, Alstom will refocus on its transport activities, pay off its debt and return cash to its shareholders, the statement added.

Published on April 30, 2014
null
This article is closed for comments.
Please Email the Editor