Alstom considers GE's bid to acquire energy business
Apr 30 2014 , New Delhi
The board of Alstom has received a binding offer from GE to acquire its energy activities, the French firm said in a statement today.
The scope of the transaction includes the thermal power, renewable power and grid sectors, as well as corporate and shared services.
The move will help Alstom to strengthen its transport business and pay off debt, the company said.
"Should this offer be approved and completed, Alstom would refocus on its transport activities, for which it is a global leader. 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 shareholder," the company said.
Alstom builds the fastest train and the highest capacity automated metro in the world, according to its website.
The company provides integrated power plant solutions and associated services for various energy sources and offers solutions for power transmission, with a focus on smart grids.
With 65,000 employees, Alstom's energy businesses registered sales of 14.8 billion euros in fiscal 2012-13, it said. The proposed price for the transaction represents an equity value of 12.35 billion euros and an enterprise value of 11.4 billion euros, Alstom said.
The Alstom board has set up a committee of independent directors to review the proposed transaction by the end of May, taking into consideration the interests of all stakeholders, including the French State.