General Electric Co on Monday made tender offers to buy shares worth up to $389 million in two of Alstom SA’s India units to comply with local rules, following its $16.9 billion bid to buy the French group’s energy unit.
GE has offered to buy 25 per cent in Alstom T&D India Ltd from public shareholders at Rs 261.25 a share in a deal valued at up to $278 million, according to a notice issued to Indian stock exchanges by the offer manager Credit Suisse.
GE is also seeking to buy 26 percent of Alstom India Ltd at Rs 382.20 per share for up to $111 million, said a separate filing. GE will proceed with the offers only if its bid for Alstom’s energy arm goes through, the filings said.
Cash-strapped French engineering group Alstom said last week it would explore a $16.9 billion offer from General Electric for its energy arm while leaving the door open to a rival bid from Germany’s Siemens.
Shares in Alstom T&D India were up 6.4 percent at 289.15 rupees, while Alstom India lost early gains and were trading down 0.8 percent at 452 rupees at 10:34 a.m. The Nifty was up 0.28 percent.
GE will indirectly acquire Alstom’s 75 percent stake in Alstom T&D and 68.6 percent in Alstom India, if its bid to buy the French group’s energy unit is successful, requiring the U.S. group to launch tender offer as per Indian market rules.