Areva T&D India's board has given a final approval to demerge its power distribution business into a new company with effect from April 1. The new company is called Smart Automation Distribution and Switchgear, the company said in a statement on Thursday.
Areva said its board had previously given approval for the demerger in principle on April 11. Under the demerger scheme, Areva T&D India's shareholders will get one Smartgrid Automation share for each share held.
scheme
The scheme contains a detailed formal plan for the separation of operations, which ensures continuity of service and accounts, among other things, for identified locations, major assets, rights and interests, liabilities and employees concerned with the medium voltage activities, the statement said.
In June 2010, the global activities of Areva T&D were acquired by a consortium of Alstom and Schneider Electric. Following this acquisition, the high-voltage transmission and power electronics business were to be carried on under the control of Alstom and the medium-voltage business under the control of Schneider Electric.
In India on December 3, 2010, following the conclusion of a mandatory tender offer, Alstom and Schneider Electric announced that they had assumed operational control of Areva T&D India. The businesses will now be segregated in terms of a scheme of arrangement through a court process, the statement said.
However, Areva T&D India will continue to trade under the AREVA T&D name until the appropriate procedures have been completed to facilitate the renaming of the company.