Snecma board approves Sagem merger

8th November 2004, Comments 0 comments

PARIS, Nov 8 (AFP) - The board of French state-controlled aircraft engine maker Snecma has approved a merger with French telecommunications equipment and defence electronics provider Sagem, Snecma said Monday.

PARIS, Nov 8 (AFP) - The board of French state-controlled aircraft engine maker Snecma has approved a merger with French telecommunications equipment and defence electronics provider Sagem, Snecma said Monday.

The Snecma board, which met last Tuesday, "examined the proposed merger between Snecma and Sagem and approved the operation, which will take place in two successive steps: a public offer by Sagem for Snecma followed by an integration of Snecma in Sagem."

The two companies surprised markets on October 29 with the announcement that they would merge.

Under the deal's terms, Sagem is to offer three of its own shares for every 13 shares in Snecma, with a cash alternative of EUR 20 per share capped at EUR 1.25 billion (USD 1.62 billion).

Sagem would also offer a pre-payment dividend of EUR 0.50 euros per share.

Once the deal is finalised, the French state's 66.22-percent stake in Snecma would be reduced to around 33 percent.

© AFP

Subject: French News

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