Areva offers Rs127 crore for Alstom India's T&D units

French state-owned power utility Areva has offered to buy Alstom's transmission and distribution operations in India for €22.31 million (Rs 127 crore).

It has offered to pay €14.3 million for the transmission and distribution business of Alstom Ltd and €8.01 million for that of Alstom Projects India Ltd.

Following clearance received from the European Commission and the American anti-trust agencies, Areva is close to completing the deal for buying the Alstom group's transmission and distribution operations worldwide.

The takeover of Alstom's Indian business does not require any such clearance.

"Together with the disinvestment agreement, and subject to its becoming effective in other countries, Areva has offered to buy Alstom's transmission and distribution operations in India," Alstom said in a communication to the Bombay Stock Exchange.

Areva's offer, however, requires that Alstom bears the cost of transfer of these operations to Areva and the transfers be completed by December 31, 2004.

Also, the offer for Alstom's Indian operations will become valid only when the sale of Alstom's global operations is completed.

"The scope of the offer and its implications are being studied," an Alstom source said.

Alstom specialises in energy and transport infrastructure. In 2002-03, Alstom recorded sales in excess of €20 billion.

Alstom employs 110,000 people in over 70 countries and is listed on the Paris and New York stock exchanges. In India, Alstom group companies together have a turnover of about Rs 1,600 crore and employ around 6,500 people.