Alstom, who is selling power and grid business to US General Electric, might return up to EUR 4 billion to its shareholders.
Earlier this year, Alstom board unanimously voted for GE’s EUR 12.35 billion bid, rejecting Siemens-Mitsubishi Heavy offer comprising EUR 8.2 billion cash and an asset swap.
On 19 December 2014, the transaction with General Electric on Alstom Energy’s businesses will be submitted to the shareholders for an approval.
Should the transaction be approved, it will be subject to the authorisations required from a regulatory and merger control standpoint in a number of jurisdictions.
Additionally, the company is considering retaining two-thirds of the cash to “strengthen Alstom’s balance sheet and deleverage the Group.”
“The Board wishes to ensure a solid financial structure for the Group in order to address future operational needs and support its development,” it noted in a statement.
The cash return to shareholders will be implemented through a public share buy-back offer.