Areva T&D acquisition may trigger open offer

A combine of Alstom and Schneider Electric have bought the entire stake in Areva T&D from its majority holder, French nuclear major Areva, beating the combine of GE, Toshiba and INCJ, in a deal valued about Rs 16,000 crore.
 
Areva owned 72 per cent stake in the Rs 2,825-crore Areva T&D India, which has a market capitalisation of Rs 7,150 crore. The new owner may have to make an open offer to the minority shareholders to acquire the Indian assets. 
 
Areva T&D has a healthy book of accounts with a net profit of Rs 244 crore in 2008 and with cash reserves of over Rs 6,000 crore. The company is also investing heavily in India. It is setting up a transformer and medium voltage switchgear manufacturing unit and power transformer manufacturing units in Baroda, besides a global research and development centre, also in Baroda. Areva T&D’s acquirer has been in India since 1910. Its arm, Alstom Projects India, has a turnover of Rs 2,330.