Areva offers to buy Alstom T & D interests in India

8 April 2005 – The nuclear technology company Areva is to acquire fellow French firm Alstom’s transmission and distribution business in India for Rs806m ($18.4m) and has made an open offer for buying 20 per cent stake from Alstom’s shareholders at Rs75.03 per share.

Areva T&D SA has agreed to buy the shares of Alstom Ltd from its promoter Alstom Holdings SA at a price of Rs30.45 per equity share. Alstom Holdings has 66.35 per cent stake or 26.4 million shares in its Indian arm. If Areva buys out all the shares, the total amount would be Rs806m.

Areva has also made an open offer to buy 20 per cent stake comprising about 7.977m shares from the shareholders of Alstom Ltd at a price of Rs75.03 per share, the manager to the offer HSBC Securities and Capital Markets said Thursday.

The offer would open on May 30 and close on June 18.

The total funds required for the open offer would be Rs598.5m, HSBC said, adding Areva would use its own resources to acquire the shares.

Alstom Ltd posted net profit of Rs169m over net sales of Rs5.81bn during April-December 2004-05.