France based Areva Group has decided to raise funds for investments by selling its Transmission and Distribution (T&D) division, which is the principal shareholder of its Indian unit Areva T&D India Ltd. It will launch an open call for bids and will focus on the price offered and the industrial and labor projects. The civil nuclear energy major needs to make investments in order to make further inroads into the renewable energies market, it said in a press release.
Depending on the interest generated, the group will decide on whether to dispose off T&D or not. A potential buyer will be selected before the end of the year, the press release said. AREVA T&D has Euro 5 billion revenues, 31,000 employees and 72 facilities around the world.
Areva has more than 67% stake in the listed Areva T&D India, which is a listed entity. The firm has market capitalisation of Rs 8,686 crore at the close of trading today.
Areva had acquired the transmission and distributions divisions from Alstom in 2004, when Alstom was on the brink of collapsing. The divisions were acquired for an enterprise value of €950 million.
The group is reportedly looking at raising $14 billion (€10 billion) in total by selling stakes and disposing off units.
The company is also mulling selling its stake in Eramet and ST Microelectronics. These stakes, in any case, will remain in the public sector owing to their strategic nature.
The Group’s advisory board has also decided to raise capital from strategic and industrial partners by increasing its capital. The group may sell a 15% stake. The increase will be open to investment certificate holders. The group is also launching an employee shareholders program.
Financial Times reports that the new strategic partners could include Mitsubishi Heavy Industries of Japan and Middle Eastern sovereign wealth funds. The partners would be selected by both Areva and the French government on the basis of strategic and geopolitical criteria. Mitsubishi Heavy Industries (MHI) has reportedly said that it would consider buying a stake in Areva if the French government offers it a stake.
