ASSYSTEM makes two strategic decisions to allow its two major business lines to accelerate their growth
(Thomson Reuters ONE) -
Assystem makes two strategic decisions to allow
its two major business lines to accelerate their growth
* Global Product Solutions: Assystem joins forces with Ardian to develop its
activity of engineering products and services post-development.
* Energy & Infrastructure: Assystem strengthens its strategic partnership with
EDF by committing to participate in the round table of New Areva NP.
Paris, 11 May 2017 at 7 a.m. - Assystem S.A. (ISIN no.: FR0000074148 - ASY)
announces two strategic decisions, with the aim of accelerating the growth of
its two main business lines.
Dominique Louis, Chairman and CEO of Assystem, said: "These strategic decisions
provide crucial benefits to the group's two main business lines. They offer our
customers a response that meets their expectations, our collaborators new
opportunities and create value for our shareholders."
Conclusion of an agreement between Ardian and Assystem to allow GPS to remain
one of the main parties involved in the ongoing consolidation of the R&D
outsourcing market.
Assystem has concluded an agreement with Ardian[1] with a view to selling to
Ardian 60% of its R&D outsourcing division Global Product Solutions (GPS), the
group remaining closely associated with the development of GPS through its 40%
residual stake. Assystem will consolidate this holding by the equity method.
Assystem aims to allow GPS to remain one of the main players in the ongoing
consolidation of the R&D outsourcing market. By cooperating with the private
independent investment company Ardian, the group gives GPS access to the
resources and expertise that Ardian deploys to support the growth of its
holdings, particularly through identification and financing of acquisitions.
GPS aims to respond to the expectations of its clients, who are willing to
prioritise fewer suppliers with a more general, global offering. Enhancing GPS's
growth and its geographical and sectorial reach is of the essence to ensure,
over the long run, its position as a market leader.
The company's managerial teams will remain in place. Mr Olivier Aldrin, former
deputy chief executive officer of the Altran group, will assume the role of
chairman of the management board from the transaction date.
The value determined for 100% of GPS is of ?550 m. Taking into account the bank
financing to be put in place by the acquisition vehicle, Assystem will invest
its own funds in this latter for approximately
?125 m, representing its 40% stake. The tax and other costs incurred by Assystem
represent approximately ?25 m, therefore the net proceeds to it will amount to
approximately ?400 m. They will be used on one hand, to accelerate the growth of
its Energy & Infrastructure division and on the other hand, to finance a share
repurchase.
Strengthening of the historic partnership with EDF: submission of an offer to
own 5% of the stock in New Areva NP[2]
Assystem, the leading independent nuclear engineering company in Europe, is
willing to accelerate the development of its Energy & Infrastructure (E&I)
division in a context of rapid growth in the world's nuclear engineering needs,
driven by the necessary replacement of electricity generating means using fossil
fuels with carbon-free means.
In this context, Assystem wishes to take part in the reconfiguration of the
French nuclear industry and has, accordingly, made an offer to AREVA and EDF
(future controlling shareholder of New Areva NP) to own a 5% stake in this new
entity, based on a valuation consistent with that drawn up between EDF and AREVA
for the stake held by EDF (i.e. a value for 100% of the capital of ?2.5 billion,
on a debt-free cash-free basis, not including the effect of potential price
adjustments).
The commitment made by Assystem will result in an investment of c. ?125 m, to be
made when New Areva NP will have been fully incorporated and the conditions
precedent to its sale by AREVA will have been met.
This commitment is part of a broader agreement with EDF, aimed at consolidating
their partnership, particularly for maintenance in operating conditions
activities of all civilian nuclear reactors in France and in Great Britain and
creating new opportunities for Assystem to take part in new build projects led
by the French nuclear industry. It should also help to strengthen Assystem's
links with historical partners of the French nuclear sector (Japanese and
Chinese). Furthermore, this participation will not lead to any restriction to
the field of collaborations entered into by Assystem with other major
international actors (Russian and Korean).
New Areva NP, the activities of which generated revenues of ?3.27 billion in
2016[3], will be refocused on its core business, and be immune from the risks of
turn key projects and full implementation for the construction of new nuclear
power plants. The value retained for the company's capital takes into account
the effects of the performance plan implemented since 2015 on the operational
profitability of its activities.
Based on the expertise gained in the management of complex projects with strong
regulatory restrictions, and the advances recorded in the development of
robotics and digitalisation of engineering services, Assystem will also continue
to develop its activities on markets in sustained growth of transport
infrastructures, life sciences, energy efficiency of buildings and security
systems, thanks to organic and external growth.
Share repurchase
A portion of the proceeds of the sale of 60% of GPS will be, subject to closing,
used by Assystem to finance a repurchase of part of its shares pursuant to an
offer to be launched within three months of closing. Such offer will be made for
an amount of at least ?200 m and on a minimum of 25% of Assystem shares (not
including treasury shares).
Assystem's Board of Directors held on 9 May has agreed to these terms and to
structure the share repurchase so that HDL Development, which holds a 60.7%
stake in Assystem, maintains such stake at that level after the completion of
the offer.
The terms and conditions of the share repurchase will be subject to the opinion
of an independent expert and the approval of Assystem's shareholders during an
extraordinary shareholders' meeting.
ABOUT ASSYSTEM
Assystem is an international group specialised in engineering and is listed on
Euronext Paris. As a key participant in the industry for 50 years, Assystem
supports its clients in developing their products and managing their capital
expenditure throughout the product life cycle. Assystem employs more than
12,500 people worldwide and generated ?956 million in revenue in 2016.Assystem
SA is listed on Euronext Paris (ISIN no.: FR0000074148 - ASY).
GPS, which had revenues of ?578 million in 2016 (of which 59% in Aerospace, 33%
in Automotive and 8% in Transportation & Industry), specialises in product
engineering and post-development services for industrial clients operating in
the aerospace, automotive, transportation and manufacturing industries. Its
activity is highly technical and the company has proven expertise in critical
and complex systems.
E&I, which had revenues of ?316 million in 2016 (of which 60% in Nuclear and
40% in Energy Transition & Infrastructures), specialises in engineering in the
sectors of energy and infrastructure. E&I operates in restricted environments,
with strong operating safety requirements, renewable energies, transport
infrastructure and building, as well as the life sciences. On the nuclear
market, Assystem is one of the four leading engineering companies in the world,
and the largest independent actor in Europe.
For more information, visit www.assystem.com
Find Assystem on Twitter: (at)Assystem
CONTACTS
ASSYSTEM ACTIFIN | Financial ELABE | Corporate communication
Philippe Chevallier Communication Isabelle Bruno Lorthiois
Deputy chief executive Dray bruno.lorthiois(at)elabe.fr
officer & CFO idray(at)actifin.fr Tel.:
Tel.: +33 (0)1 Tel.: +33 (0)1 01 45 19 20 94. 06 78 97 07 24
55 65 03 10 56 88 11 29
Anne-Charlotte Dagorn KOMODO AGENCY |
Communications Investor Relations
Director Agnès Villeret
acdagorn(at)assystem.com agnes.villeret(at)agence-
Mob. UAE +971 (0)52 komodo.com
680 0043 Mob. FR +33 Tel.: +33 (0)6
(0)6 83 03 70 29 83 28 04 15
--------------------------------------------------------------------------------
[1] The agreement consists in an offer made by Ardian to benefit Assystem. It
includes the organisation and financing of the GPS division acquisition,
allowing Assystem to own 40% of the share capital of the acquisition vehicle.
Ardian and Assystem are expected to conclude contracts as per the terms of the
offer, upon receipt of notice from the employee representative bodies as
required by the legislation in force.
The operation will be, in accordance with Position-Recommendation No. 2015-05 of
the French Financial Markets Authority, subject to the consultation of
Assystem's shareholders. As such, an ordinary shareholders' meeting will be
convened in the next few days. The Board of Directors of Assystem, which met for
this purpose on 9 May 2017, unanimously recommends the shareholders of Assystem
rule in favour of this operation. HDL Development, which holds a 60.7% stake in
Assystem, will take part in the vote and confirms its unconditional support for
the operation.
The operation is planned to close end of Q3 2017 and is subject to approval by
the relevant merger control authorities.
2 New Areva NP, a wholly-owned subsidiary of AREVA NP, in which the assets and
activities currently conducted by AREVA NP of the design and supply of equipment
for nuclear reactors, design and supply of fuel assemblies, and services to a
broad installed base of nuclear reactors worldwide will be transferred, with the
exception of contracts and means relating to the EPR OL3 project in Finland and
some contracts relating to parts forged at the Le Creusot plant.
[3] Revenues per combined consolidated financial statements.
Assystemstrategicdecisions:
http://hugin.info/143356/R/2103759/798131.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: ASSYSTEM via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 11.05.2017 - 07:03 Uhr
Sprache: Deutsch
News-ID 541731
Anzahl Zeichen: 12035
contact information:
Town:
Paris
Kategorie:
Business News
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