ALSTOM India hits 52-week high

ALSTOM India rose 0.68% to Rs 425 at 11:30 IST on BSE after the company said it has agreed to sell its auxiliary components business to Triton, a leading European investment firm, for an enterprise value of around euro 730 million.

The announcement was made before market hours today, 2 April 2014.

Meanwhile, the S&P BSE Sensex was up 63.33 points or 0.28% at 22,509.77.

On BSE, so far 9,322 shares were traded in the counter as against average daily volume of 14,000 shares in the past two weeks.

The stock was volatile. The stock surged as much as 4.22% at the day's high of Rs 440 so far during the day, which is a 52-week high for the counter. The stock lost as much as 0.03% at the day's low of Rs 422 so far during the day.

ALSTOM India said that the transaction with Triton was approved by the board of directors of Alstom on 31 March 2014. This project is part of the non-core asset disposal programme, announced by Alstom last November. The transaction is expected to close before the end of first half of fiscal year 2014/15, ALSTOM India said in a statement.

ALSTOM India said that the auxiliary components business sold is part of the steam segment within Thermal Power and is active both in the new equipment market and aftermarket services across three product lines: air preheaters and gas-gas heaters for thermal power plants, heat transfer solutions for a variety of petrochemical and industrial processes, and grinding mills for diversified industrial applications. Headquartered in Germany, the activities employ more than 1,500 people worldwide, with operations in Germany, the USA, Japan, China, India, Brazil, Switzerland and the Czech Republic. All employees will be transferred, ALSTOM said. For the fiscal year ending 31 March, the business is expected to generate revenues in excess of 430 million, with a double-digit operating margin, and strong growth prospects for the years ahead, ALSTOM India said in a statement.

Nicolas Tissot, Chief Financial Officer of Alstom said, "This transaction highlights the strength and value of Alstom portfolio of activities, and illustrates the group's ability to deliver on its strategy of selective, value-enhancing disposals".

Peder Prahl, Director of the General Partner of the Triton funds said, "Triton looks forward to working with the management team and employees to strengthen and grow the company".

Triton is an investment firm, focused on investing in and developing leading Northern European companies.

ALSTOM India reported net loss of Rs 7.58 crore in Q3 December 2013, lower than net loss of Rs 14.59 crore in Q3 December 2012. Net sales rose 9.1% to Rs 531.49 crore in Q3 December 2013 over Q3 December 2012.

ALSTOM India provides engineering, manufacturing, project management and supply of products and solutions for infrastructure sector.

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