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: firstname.lastname@example.org Investor Relations Department Barbara Zubiria Furest.Tel. +34 954 937 111E-mail: email@example.com About Abengoa
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV