Areva on Tuesday said the combine had won the bid for Areva T&D, beating the combine of GE, Toshiba and INCJ, in a deal valued at 2,290 million (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. Market analysts said the new owner will have to make an open offer to the minority shareholders to acquire the Indian assets.
Share prices of Areva T&D had risen to a 52-week high of Rs 386 per share on June 12 (from Rs 130 in December last year), after Areva decided to hive off its power transmission and distribution business to concentrate on its core business of making nuclear and power equipment.
Areva T&D has a healthy book of accounts, unlike its parent, 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. It also has large manufacturing facilities 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 crore and is listed on the stock exchanges.
