Alstom in race for Areva’s T&D biz

7370 Investors following Alstom T&D. Share this News with them.

0

Like this story, share it with millions of investors on M3

Alstom in race for Areva’s T&D biz

Alstom of France, a global leader in the power generation equipment and services business, is believed to be the front-runner for buying out Areva’s power transmission and distribution division, according to reliable power industry sources.

Post your opinion here

 

0

Tweet

Share on Tumblr

ALSO READ See latest News about Alstom T&D See previous management interviews See what other Experts & Brokerages are saying about Alstom T&D Alstom T&D BSE | NSE 25/05/12 Are Mutual Funds betting on Alstom T&D?

Chennai, July 1

Alstom of France, a global leader in the power generation equipment and services business, is believed to be the front-runner for buying out Areva's power transmission and distribution division, according to reliable power industry sources.

Others in the race include Siemens, the German power equipment manufacturer.

The Areva group's supervisory board decided in Paris on Tuesday to sell its transmission and distribution division, as part of the group's efforts to finance its long-term plans, according to a press release on its web site.

Also Read: Alstom Projects has target of Rs 545-550: M Thacker

Alstom had sold its transmission and distribution business to Areva in 2004 for about € 1 billion when it was in financial trouble.

The release said that it would invite bids for the T&D business and would pay special attention to the price offered, the industrial and labour projects. "Depending on the interest generated, the decision to dispose of T&D or not and the choice of a potential buyer will be taken before the end of the year," it said.

A communication sent to the stock exchanges by Areva T&D India Ltd , a listed company in which the parent holds a 72.18 per cent stake, said the T&D business globally had revenues of € 5 billion, 31,000 employees and 72 facilities.

Areva T&D India will also be part of the overall sale plan, but the deal itself will take place separately as it is listed on the Indian stock exchanges.

Areva T&D India had revenues of Rs 2,655 crore and net profit of Rs 226 crore for financial year 2008 (January to December) and first quarter (January-March 2009) revenues of Rs 845 crore and net profit of Rs 51.40 crore.

Areva T&D India's Rs 2 shares were up nearly 8 per cent on the NSE on Wednesday to close at Rs 361.95.

Taken from Business Line

thehindubusinessline.in