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BRIEF-Bombardier, Alstom Sign Definitive Agreement For Sale Of Transportation Business

Published 2020-09-16, 10:04 a/m
© Reuters.
BBDb
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Sept 16 (Reuters) - Bombardier Inc BBDb.TO :

* BOMBARDIER AND ALSTOM SIGN DEFINITIVE AGREEMENT FOR SALE OF TRANSPORTATION BUSINESS

* SALE BASED ON ENTERPRISE VALUE OF $8.4 BILLION (EUR 7.15B),REFLECTING A POST-MOU $350M (EUR 300M) PRICE REDUCTION, OFFSET BY POSITIVE FOREIGN CURRENCY IMPACT

* CLOSING NOW EXPECTED IN Q1 OF 2021, SUBJECT TO CUSTOMARY CLOSING CONDITIONS AND REMAINING REGULATORY APPROVALS

* NET PROCEEDS TO BOMBARDIER EXPECTED TO BE ABOUT $4.0B AT CLOSING

* BASED ON BOMBARDIER TRANSPORTATION'S CURRENT OPERATIONAL PERFORMANCE AND MARKET CONDITIONS, TOTAL PROCEEDS AFTER DEDUCTION OF DEBT-LIKE ITEMS, TRANSFERRED LIABILITIES AND ESTIMATED CLOSING ADJUSTMENTS(1) ARE EXPECTED TO BE $6.2B

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