French Government agrees to purchase up to 20% stake Alstom

22 June 2014 (Last Updated June 22nd, 2014 18:30)

The French Government has agreed to acquire a 20% stake in Alstom as part of the agreement signed with Bouygues.

The French Government has agreed to acquire a 20% stake in Alstom as part of the agreement signed with Bouygues.

On 21 June 2014, the Alstom Board of Directors have unanimously decided to positively recommend the offer made by General Electric (GE) to acquire the power and grid businesses of Alstom, with the transaction, subject to approvals, scheduled to close in 2015.

For a period of 20 months upon the completion of all the operations announced by Alstom on 21 June 2014, the French Government will use a call option, allowing it to acquire a maximum of 20% of the capital of Alstom, which is held by Bouygues.

"The agreement represents Bouygues' support to the strategic and industrial strengths of the plans announced by Alstom and General Electric."

A maximum of 15% of the capital of Alstom will be acquired at the market price, at the end of these 20 months for a period of eight trading days, with a standard discount.

Bouygues will also lend its shares to allow the French Government to acquire 20% of the voting rights in Alstom while supporting the appointment of two members to Alstom's Board of Directors to be named by the government, upon completion of all the operations announced by Alstom on 21 June 2014.

The agreement represents Bouygues' support to the strategic and industrial strengths of the plans announced by Alstom and General Electric.

Alstom also received a Siemens and Mitsubishi Heavy Industries' (MHI) revised proposal.

Energy