01.05.14
Alstom to ‘strengthen’ transport division after energy sale
French train manufacturer Alstom has stated that if it sells its energy activities to potential buyer General Electric (GE), it will “refocus” and “invest” in strengthening its transport division.
The Paris-listed company added that if the potential acquisition goes ahead its transport division, which would be a standalone company, led by its current management and with Bouygues as a long-term shareholder, would be well positioned for growth.
Headquartered in St Ouen, the transport business generated €5.5bn of sales in fiscal year 2012-13, is present in 60 countries and employees 27,000 staff, including 9,000 in France.
The board of directors at Alstom announced today that it has received a binding offer from GE to acquire its energy activities for €12.4bn (£10.2bn). But completion of the transaction is subject to merger control and other regulatory clearances.
Should the offer be approved and completed, Alstom would use the sale proceeds to strengthen its transport business and give it the “means of an ambitious development, pay down its debt and return cash to its shareholders”.
Additionally, the board has reviewed a declaration of interest received from Siemens, regarding an alternative transaction. Siemens will have a fair access to information needed to make, should it decide to do so, a binding offer. However, this declaration will be reviewed in light of Alstom’s corporate interest and the interest of all stakeholders, in accordance with the commitments made.
Henri Poupart-Lafarge, president of Alstom Transport, said: “Thanks to its recognised technological leadership, global industrial footprint combined with a robust balance sheet, Alstom Transport would be ideally placed to capture growth opportunities in this dynamic market.”
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