This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Abengoa Agrees To Sale Of Its 40 Percent Stake In Telvent To Schneider Electric

SEVILLE, Spain, June 1, 2011 /PRNewswire/ -- Abengoa, the international company that develops innovative technology solutions for sustainable development in the energy and environment sectors, has reached an agreement to sell its 40% stake in Telvent GIT, S.A. to Schneider Electric at a price of U.S. $40.00 per share. The transaction is subject to approvals from the European and U.S. competition authorities. The sale will be made as part of a tender offer that Schneider Electric will be launching within ten business days.

Abengoa will receive euro 421 million in net cash from this deal, including a euro 51 million repayment of a credit line to Telvent, and will reduce its net debt by euro 774 million (depending on the foreign exchange rate used).

This transaction is part of Abengoa's strategy of narrowing the focus on its core businesses, which include the engineering, development and operation of thermo-solar power plants, water desalination plants, transmission power lines, biofuels production plants and industrial waste recycling plants. In addition, the sale is part of Abengoa's anticipated financial strategy to deleverage the balance sheet at the proper time and at proper valuations.

Telvent is a leading real-time IT solutions and information service provider, which employs more than 6,000 professionals in 19 countries. It was organized as a subsidiary of Abengoa in 1969. At the time of its initial public offering in 2004, Telvent was the first Spanish company to undertake a primary listing of its ordinary shares on the NASDAQ stock market. In 2007, it was selected to be part of the NASDAQ Global Select Market, a segment of the NASDAQ Global Market with the highest initial listing standards of any exchange in the world.

Manuel Sanchez Ortega, CEO of Abengoa, said, "I believe this is a highly satisfactory transaction for Abengoa. We are strengthening our balance sheet from the sale of assets at a very attractive valuation, so we can continue to develop innovative solutions for sustainable development, and creating value for our shareholders. For us, it is equally important that the offer has been made by a company like Schneider Electric, which is presenting a solid and attractive project for Telvent, which in turn creates a great professional opportunity for Telvent employees."

For additional information, please contact:Communications Department Patricia Malo de Molina Melendez Loreto Gonzalez GoizuetaTel. +34 954 93 71 11 E-mail: communicacion@abengoa.com

Investor Relations Department Barbara Zubiria Furest.Tel. +34 954 937 111E-mail: ir@abengoa.com

About Abengoa

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs