Alcatel to acquire Thales’ stake in Alcatel Space

Alcatel is to acquire the 48.83% stake in Alcatel Space currently held by Thales, bringing its participation up to 100%. Price of the transaction will amount to 795 million euros…

Following meetings of the Boards of Directors of Alcatel and Thales, an agreement has been reached between the two groups under which Alcatel will acquire the 48.83% stake in Alcatel Space currently held by Thales, bringing its participation up to 100%.

The price of the transaction will amount to 795 million euros, to be paid half in cash and half in Thales shares. This will reduce Alcatel’s stake in Thales from 25.3% to approximately 20%.

The operation will be referred to the European Commission for approval.

Alcatel stated that the agreement would enable the company to strengthen its interests in the sector whilst Thales would refocus on its three core businesses (Aerospace, Defence and Information Technology & Services), in which the Group completed a number of major acquisitions in 2000.

Thales will use the cash received (397.5 million euros) and the shares previously held by Alcatel to strengthen its financial structure.

In 2000, Alcatel Space generated revenues of 1.3 billion euros. Established in 1998 when the satellite businesses of Aerospatiale, Alcatel and Thales merged, the company is one of the world leaders in satellite and space systems.

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