Alstom evaluates GE's proposal to take over energy operations

Alstom evaluates GE's offer to take over energy activities: Alstom considers GE's bid to take over Energy activities and create a strong and stand-alone market leader in the rail transport industry

The Board of Directors of Alstom announced that it received a binding offer from General Electric (GE) in order to take over energy activities. The scope of the process includes Thermal Power, Renewable Power and Grid (Energy Transmission) sectors as well as institutional and shared services. These businesses have sold 65.000 billion euros in the 2012 / 13 business year with the 14.8 employee. The quoted price is a fixed price for 12.35 billion Euro Equity Value, 11.4 billion Euro Business Value or 12.2x FY13 EBIT.

In the event that this proposal is approved and the process is completed, Alstom will re-focus on Transport to which it is a global leader. Alstom will use its sales revenue to strengthen the Transport business and provide it with major development opportunities, to repay its debt and to give cash to its shareholders.

The Alstom Board of Directors, which considers the strategic and industrial return of this proposal unanimously and takes account of the commitments made by the public to the public by GE, shall be independent from the has decided to establish a management committee. Patrick Kron and the committee will act together with the representatives of the French State to evaluate their views.

In the event of a positive conclusion, the representative bodies of Alstom employees shall be informed and consulted prior to a definite agreement.

Completion of the transaction shall be subject to merger control and other regulatory permits. According to the AFEP-Medef law, final approval of the transaction will be submitted to the shareholders. Bouygues, the shareholder of Alstom's 29, pledged not to sell his shares until this approval and stated that he would support the recommendation of the Board of Directors of Alstom.

Within the context of this binding offer, Alstom may not ask any third party for the transfer of all or part of the Energy business. However, Alstom reserves the right to respond to inadvertently submitted proposals for the entire Energy business line and to negotiate with interested bidders who could lead to a superior offer for Alstom. If the Board of Directors supports another transaction after advising GE's proposal after the review, Alstom GE will be liable to pay a withdrawal fee equal to% 1,5 of the purchase price.

31 As of March 2014, 1.9 billion of net cash and all assets and liabilities related to energy activities, including 0.9 billion Euro of other net debts (including 1.2 billion of net pension debts). The coefficient based on EBIT in the foreseen framework.

The Board of Directors also reviewed the declaration of intent from Siemens as an alternative transaction. If Siemens decides to make a binding offer, Siemens shall have the right to fair access to the information required for it. This declaration will be reviewed in the light of Alstom's corporate interests and the interests of all its stakeholders in accordance with the commitments.

Alstom President and CEO Patrick Kron ler The combination of Alstom and GE's complementary Energy businesses will create a more competitive business that will better serve customer needs. Alstom employees will join a well-known, large, global player with long-term investment opportunities for people and technology to support energy customers around the world. The proposed transaction will allow Alstom to develop the Transport business as a stand-alone company with a strong balance sheet to take advantage of the opportunities in the dynamic rail market.,

GE is well positioned to fully assess the value of Alstom Enerji's human and technology
GE and Alstom Energy have complementary solutions in the Power and Grid sectors.
- In the Thermal Energy sector, Alstom and GE have complementary solutions in steam turbine and gas turbine technology. Alstom will enrich the energy solutions of the new structure with its balance of plant and turnkey solutions;
- In the wind energy sector, while GE land is focused on wind, Alstom is smaller in land wind but offers competitive solutions in marine wind;
- In the hydropower industry, Alstom is an important global player and GE is not present in this area;
- In the service industry, Alstom's comprehensive product portfolio is fully compatible with GE's global presence.
- In the Grid industry, Alstom and GE are complementary to the products and solutions they offer and the geographic areas they focus on.
The combination of Alstom and GE's Energy activities will provide customers with the most complete and advanced range of solutions, creating an important synergy and capacity for investing in technology.

Alstom will remain as a registered company in the Transport business.
The Transport business with its headquarters in St Ouen has accounted for 2012 billion euros of sales in the 13 / 5.5 business year, with 60 running in the country and 9.000 in France, with a total of 27.000 employees.
Alstom's roots in the rail transport area go back a hundred years. Alstom Transport; is a global leader in rail transport equipment, systems, services and signaling for urban, suburban, regional, trunk and freight transport.

The proposed transaction will re-focus Alstom registered in Paris on Transport activities and provide financial power to Alstom Transport to accelerate its growth in a growing market based on reliable growth, increasing urbanization and environmental issues. Transport will be well positioned for growth with Bouyguesas, which is the leader and long-term shareholder of its current management.

Fırsat Alstom Transport will be in an ideal position to achieve growth opportunities in this dynamic market, thanks to its well-known technological leadership, solid balance sheet and global industrial coverage,. Said Alstom Transport President Henri Poupart-Lafarge.


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