UPDATE: Invensys to Sell Invensys Rail in GBP 1.74B Deal with Siemens AG (SI)

Article Related Articles (1) Stock Quotes (1) Comments (0)

(Updated - November 28, 2012 11:42 AM EST)

Proposed disposal of Invensys’s Rail Division for £1,742 million, agreement with Trustee of Invensys’s UK Pension Scheme, proposed £625 million return of capital and strategy for the more focused continuing Group

Summary

• Invensys agrees to dispose of Invensys Rail to Siemens for £1,742 million
  
• Agreements with Trustee of Invensys’s UK Pension Scheme to provide the Company with a long term pension solution and increased financial flexibility:
  • Up-front payment of £400 million, and
    
  • Payment of £225 million to a trust
• Proposed return of cash to Shareholders of £625 million (approximately 76 pence per share)
  
• Creates a more focused industrial software, systems and control equipment business with significant exposure to higher margin and higher growth markets, and funds to invest in them
  
• Significant run-rate cost savings of £25 million per annum by the end of FY2014 based on a simplified organisational structure
  
• Completion expected in second quarter of calendar 2013 conditional on Invensys shareholder approval, UK Pensions Regulator approval, certain anti-trust consents and lending bank approval.

In view of its size, the proposed disposal constitutes a Class 1 transaction for the purposes of the Financial Services Authority’s Listing Rules and therefore requires the approval of Invensys shareholders in order for it to be implemented. A circular containing further details of the proposed disposal and containing the notice convening the General Meeting will be sent to Invensys’s Shareholders as soon as practicable.

---

Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW

---

*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here

---

---

You May Also Be Interested In

• Royalty Pharma Raises Elan (ELN) Bid to $12.50/share
• Hercules (HERO) to Divest Inland Fleet in $45M Deal; Sees Impact
• Elan Corp (ELN) Plans Strategic Change of Company; Proposes $200M Buyback

Create E-mail Alert Related Categories

Corporate News, Mergers and Acquisitions

Add Your Comment

Name

Subject

Body

Share on Facebook

Verification
can't see the text?
click here to refresh the image.
what's this?