Areva, the French nuclear reactor group, has said that it would sell its T&D India business with proposed sale of its power transmission and distribution division. However, its Indian arm – Areva T&D India, 72-percent owned by T&D, will continue with its planned market strategies. A
reva Chief Executive Anne Lauvergeon said that the entire sale process is likely to complete by the end of this financial year.The Indian unit of the company officially released an update stating that the Areva Group’s Supervisory Board has announced several steps to secure the Group’s long-term financial requirements and that it was deliberating various proposals, including opening of its capital to new strategic partners and its employees.
The Supervisory Board also instructed the Group’s Executive Board to put its global T&D Division up for sale. However, it stated ”depending on the interest generated, the decision to dispose of the T&D activity or not and the choice of a potential buyer will be taken before the end of year”.
Though the stock gave a knee-jerk reaction on this news flow, this news has been doing the rounds for quite some time now along with names of potential suitors including Alstom, Siemens and Schneider, etc.
Notably, Areva T&D India was a part of Alstom India till September 2005, and was transferred to Areva as a result of Areva acquiring Alstom’s global T&D business.
If the deal materializes, though an open offer could be triggered, pricing of the same would largely depend on its timing.