French multinational company Alstom has completed the transfer of all its interests in three energy joint ventures (JVs) to General Electric (GE) for €2.594bn (approximately $3bn) in cash.
In May this year, Alstom signed an agreement with GE with intent to exit from three renewables, grid and nuclear JVs that were set up in November 2015 as part of the sale of the Alstom Energy business to GE.
Alstom noted that the proceeds received will be used to support its strategic development initiatives.
The French company further added that a part of this amount will be used to pay out an extraordinary distribution of up to €4 per share to Alstom’s existing shareholders at the close of the business day preceding the date of closing of the transaction with Siemens.
The transaction with Siemens is expected to take place in the first half of next year, after obtaining all approvals from the concerned regulatory authorities.
With the completion of the deal, GE will now have the complete ownership of the three JVs.
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GE further noted that the transfer of JVs will not have any impact on the day-to-day operations of the businesses as it has held operational control since their inception.