Alstom shareholders approve sale of energy business to GE

Shareholders of French firm Alstom have approved the sale of the company's energy businesses to General Electric. This would, however, be subject to various other approvals.

The resolution relating to this transaction was approved by a majority of 99.187 per cent, Alstom's Indian arm Alstom T&D India said in a regulatory filing to the stock exchange. The shareholders, who held a cumulative 64.25 per cent of their shares and the related voting rights, were present during the meeting held in Paris last week.

“The Board had taken note of a limited number of recent positive and negative adjustments regarding the terms of the transaction. The combination of these adjustments should not have a material impact on the transaction,” Patrick Kron, Chairman and CEO, Alstom said. The transaction remains subject to the authorisations required from a regulatory and merger control standpoint in a number of jurisdictions. Subject to that condition, the closing of the transaction is expected in the second quarter of 2015, the statement said.

It will be accompanied by the reinvestment by Alstom of part of the proceeds into joint ventures to be formed with General Electric and will be followed by a cash return to shareholders which could range to a total of between Euro 3.5-4 billion to be implemented through a public share buy-back offer.