Alstom India to sell its industrial mill unit to European firm

Power generation and transmission company Alstom India Ltd will sell its air preheater making unit to the Indian entity of a European firm.
In a filing to BSE, Alstom India, a unit of turbine maker Alstom SA of France, said it has decided to sell auxiliary components undertaking to OAK India Pvt. Ltd, an entity of European investment firm Triton.
Auxillary components manufactures air preheaters and industrial mills.
The deal has been approved on a “slump sale” basis for a consideration of Rs.51.3 crore in cash.
Auxillary components accounted for just 2% of Alstom India’s revenue in the last fiscal, which means that according to regulations it does not need shareholder approval for the sale, the company said in the filing.
However, in light of General Electric Co.’s (GE) open offer for Alstom’s two Indian entities—Alstom India and Alstom T&D India Ltd—on 5 May, the firm will need shareholder approval through postal ballot for the sale, as the per capital market regulator’s takeover regulations.
GE made tender offers to buy shares worth up to $389 million in Alstom’s two India units to comply with local rules, following its $16.9 billion bid to buy the French group’s energy unit.
GE had offered to buy 25% in Alstom T&D India from public shareholders at Rs.261.25 a share in a deal valued at up to $278 million, according to a notice issued to Indian stock exchanges by the offer manager Credit Suisse Group AG.
GE is also seeking to buy 26% of Alstom India Ltd at Rs.382.20 per share for up to $111 million, said a separate filing. GE will proceed with the offers only if its bid for Alstom’s energy arm goes through, the filings said.