MHI, Siemens Outline Alstom Proposal

Posted by Greg Trauthwein
Friday, June 20, 2014

Mitsubishi Heavy Industries (MHI) and Siemens submitted an offer letter specifying further the proposed transaction to Alstom. With the specified offer MHI and Siemens reaffirm their commitment to strengthen Alstom as an independent Global Player in Energy and Transport. After extensive discussions with all stakeholders over the past days MHI and Siemens reviewed their proposal with regards to reducing complexity, strengthening execution and narrowing risk exposure. Based on this, MHI and Siemens decided to further simplify the structure of the proposal for the benefit of all parties involved. This resulted in an additional cash contribution of Euro 1.2 billion to Euro 8.2 billion, while the total valuation of Alstoms energy business increases by Euro 400 million to Euro 14.6 billion.

The specified proposal continues to preserve Alstom's current perimeter in almost all its activities, enhances its industrial sustainability, strengthens its financial structure, enabling it to be a approx. Euro 20 billion revenue French listed group. With additional 1,000 new created jobs by MHI and additional 1,000 apprenticeship training positions by Siemens the proposal will foster job creation in France. MHI and Siemens continue to firmly believe that their proposal is the best one for Alstom, its employees, its clients, its shareholders and French national interests. Such proposal is superior industrially, financially and socially.

The specifications result in the following measures:

MHI now intends to buy a 40 percent stake in the combined steam, grid and hydro business of Alstom. This amendment will significantly simplify the implementation of the transaction, as this investment may now be undertaken through one single holding company, as opposed to three JVs as contemplated in its June 16th proposal. Therefore cash contribution from MHI increases by Euro 800 million, from Euro 3.1 billion up to Euro 3.9 billion, while the valuation of the underlying businesses remain unchanged.

Based on a subsequent, more advanced opportunity / risk analyses Siemens had been able to increase its cash offer by Euro 400 million. This will increase the total evaluation of the proposal accordingly to Euro 4.3 billion.

In addition to the proposed Letter of Intent for the Rail business, Siemens offers to enter immediately into a Joint Venture for Mobility Management including Signalling between Alstom and Siemens.

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Conrad Shipyard Forms LNG Business Unit

Conrad Shipyard has formed a new business unit focused on LNG projects.   Conrad, builder of North America’s first LNG bunker barge scheduled for 2017 delivery,

Prince Charles Places Final Section of UK Aircraft Carrier

The second of the largest warships ever built for the U.K. Royal Navy, the Queen Elizabeth Class carrier HMS Prince of Wales, was given the royal seal of approval when HRH The Prince of Wales,

New Zealand: Maritime Trade is Key

Globally, shipping is on the rise – already 80-90 percent of the world’s trade is by ship; that is more than 12 billion metric tons of goods annually, shipped by 1.

Finance

VEB Guarantees $3 Bln of Yamal LNG Debt

Russian development bank VEB said on Friday it had provided a guarantee for $3 billion of debt to the Yamal liquefied natural gas (LNG) project, led by Russian gas firm Novatek.

US Oil Drillers Cut Rigs after 3 Weeks of Additions

U.S. oil drillers cut rigs this week for a 20th week this year after three weeks of additions, according to a closely followed report on Friday, as crude prices

World Stocks Tumble as Britain Votes for EU Exit

Global capital markets reeled on Friday after Britain voted to leave the European Union, with $2 trillion in value wiped from equity bourses worldwide, while money

Energy

VEB Guarantees $3 Bln of Yamal LNG Debt

Russian development bank VEB said on Friday it had provided a guarantee for $3 billion of debt to the Yamal liquefied natural gas (LNG) project, led by Russian gas firm Novatek.

US Oil Drillers Cut Rigs after 3 Weeks of Additions

U.S. oil drillers cut rigs this week for a 20th week this year after three weeks of additions, according to a closely followed report on Friday, as crude prices

World Stocks Tumble as Britain Votes for EU Exit

Global capital markets reeled on Friday after Britain voted to leave the European Union, with $2 trillion in value wiped from equity bourses worldwide, while money

Marine Power

MSC Jade Sails with MAN's Biggest Engine

The largest and most powerful engine from MAN Diesel & Turbo’s portfolio ever designed and built has entered service.   Built by Doosan Engine in Korea and rated at 75,

Terntank's first 15000DWT Chemical Tanker Passes Sea Trials

The first dual-fuel two-stroke engine employing the low-pressure X-DF gas admission technology developed by Winterthur Gas & Diesel (WinGD) has passed the final

Promoting National Maritime Transport Policy in Saint Lucia

A national workshop in Saint Lucia has brought together participants from various Government bodies and other stakeholders to discuss the development of a national maritime transport policy.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Naval Architecture Navigation Pipelines Pod Propulsion Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0928 sec (11 req/sec)