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

November 28, 2012 11:34 AM EST Send to a Friend
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(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.




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