Alstom launches its share capital increase with preferential subscription rights of an amount of approximately €2 billion as part of the financing of the acquisition of Bombardier Transportation.
The proceeds of the rights issue will be used to finance in part the Acquisition price which is expected to amount to up to €5.3 billion1. The rights issue is part of the total equity financing of approximately €5 billion that also includes capital increases reserved for CDPQ and Bombardier Inc., in minimum amounts of €2.632 billion and €5003 million, respectively. A bond issue in an amount of approximately €400 million is also being contemplated.
The two companies announced revised terms of an agreement which gives the rail unit an enterprise value of $8.4 billion, in a deal that would allow the cash-strapped Canadian firm to pay down some of its $9.3 billion in debt.