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| Areva to hive off T&D biz, to sell Indian arm |
| Press Trust of India / New Delhi Jul 02, 2009, 12:32 IST |
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French power equipment maker Areva is all set to dispose of its transmission and distribution business, including its Indian arm Areva T&D.
The company's supervisory board, which met early this week, has asked its executive board to put the group's transmission and distribution (T&D) division up for sale to part finance the group's long-term development plan, a statement on the French company's website said.
The local arm of Areva, Areva T&D India, is engaged in manufacturing equipment for the power T&D companies. Its contribution to the global turnover of the T&D business was 471 million euros (approximately 8 per cent) in 2008. Areva T&D global's turnover was 5,065 million euros for the year 2008.
It recently bagged an order from aluminium major Hindalco for erecting 440 kilo volt (Kv) substations at the company's plants in Singrauli (Madhya Pradesh) and Sambalpur (Orissa).
An open call for bids will be launched and the group will pay special attention to the price offered and also 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 added.
In order to continue to reinforce its position as a leader on the nuclear market and to make further inroads into the renewable energies market, Areva needs to invest and recruit, while maintaining a healthy balance sheet, the statement said.
The company has further decided to open up its capital to strategic and industrial partners, to the value of 15 per cent, mainly by increasing its capital.
Areva is also considering disposing of its stakes in metal mining group Eramet, Geneva-based computer chip maker STMicroelectronics. It is also set to continue its cost reduction program and to improve operational performance.
"The group must be able to pursue an ambitious investment program to take advantage of its growth. The plan that has been finalized by the shareholders will completely enable it to do so", Chairman of the company's supervisory board Jean-Cyril Spinetta added.
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