facebook-page-view
Advertisement

Alstom-Schneider Makes Open Offer To Buy 20% In Areva India

By Pallavi S

  • 28 May 2010

Alstom-Schneider combine that acquired global transmission & distribution business of power equipment and systems company Areva has made an open offer to acquire 20% additional stake in Areva T&D India, the public listed arm of Areva.

The open offer has been made at Rs 295.34 a piece, 10.5% premium to the closing price of the scrip on Thursday at NSE. The stock was up 7% in early morning trade as arbitrageurs got in to take advantage of capital gain possibilities.

At the open offer price, Alstom-Schneider will have to shell out as much as Rs 1,410 crore (~$ 310 million) if they manage to buy out the entire shares as per the offer. Incidentally, promoter holding in Areva T&D India is around 72% stake and another 20% stake would make a case for delisting the firm.

Advertisement

For the year ended December’09, Areva T&D had net sales of Rs 3,565 crore with net profit of Rs 192 crore. It had reserves of over Rs 800 crore for 2009.

The Areva stock was up 3% and was trading at Rs 300 soon after the announcement of the global deal appeared in December last year. According to a statement issued at that time, Alstom-Schneider pipped GE and Toshiba-INCJ to win the bid for T&D business of Areva for € 2.29 billion in equity or € 4.09 billion in enterprise value.

Among those who were interested in bidding for the business included India’s Avantha Group which has power sector equipment exposure through Crompton Greaves.

Advertisement

Share article on

Advertisement
Advertisement