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Alstom India shares surge 12% as parent firm weighs GE offer

business Updated: Apr 30, 2014 18:43 IST
Alstom India

Shares of Alstom India surged almost 12% on Wednesday after its parent French firm said it is considering an offer of more than €12 billion from US-based General Electric for its power business and has reviewed a declaration of interest from Siemens.

Alstom India's stock shot up by 11.87% to settle at Rs 456.60 on the BSE. During the day, the scrip gained as much as 17.82% to Rs 480.90.

On the National Stock Exchange, the stock zoomed 10.25% to close at Rs 449.50.

While over 15 lakh shares were traded on the NSE, 4.22 lakh Alstom India shares changed hands on the BSE.

Shares of Alstom T&D India rose 3.6% to Rs 274.75 on the BSE.

"The board of directors of Alstom announced today that it has received a binding offer from General Electric (GE) to acquire its energy activities. The proposed price is a fixed price representing an equity value of €12.35 billion," Alstom said in a statement.

The scope of the proposed GE transaction includes the thermal power, renewable power and grid sectors, as well as corporate and shared services.

Proceeds from the sale will be used mainly to expand Alstom's transport business.

"Should this offer be approved and completed, Alstom would refocus on its transport activities, for which it is a global leader. Alstom would use the sale proceeds to strengthen its transport business and give it the means of an ambitious development, pay down its debt and return cash to its shareholders," the company statement said.