M&A Activity • Dec 5, 2014
M&A Activity
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5 December, 2014
Alstom signed today an agreement with the Kazakh national railway company (KTZ) to acquire an additional 25% of KTZ's stake, thereby bringing its total share to 50%, in the EKZ joint venture (JV). This JV has been awarded a $\epsilon$ 1.3 billion for the maintenance of freight (KZ8A) and passenger (KZ4AT) electric locomotives1 during 25 years. These agreements were signed by Askar Mamin, KTZ President and Henri Poupart-Lafarge, Alstom Transport President, during the official visit of the French President François Hollande.
After approval by the relevant authorities. Alstom will become the main shareholder in EKZ. KTZ and TMH both holding 25% of the joint venture based in Astana. With Alstom as major shareholder, EKZ scope will be extended to maintenance activities with the creation of a service centre.
"The agreement and the contract signed today show the sustainability of Alstom's global strategy. By increasing Alstom's share in EKZ, we show our confidence in the attractiveness of Kazakhstan investment environment and we contribute to the development of new expertise and skills locally to address not only Kazakhstan's needs but also regional ones. This major maintenance contract confirms Alstom's commitment to the modernisation of the rail industry and to the dynamism of Kazakhstan and central Asia with its rolling stock expertise and maintenance activities" said Martin Vaujour, Managing Director, Alstom Transport Central Asia.
Kazakhstan is an important hub linking Europe, Middle East, Asia and Russia through the new Silk Way. With almost 20,000 km of tracks, the Kazakh railway network is the world's third biggest using the 1,520 mm track gauge. Besides wide and winterized rolling stock able to run in temperatures reaching -50°C, this market is characterised by very specific technical standards which require adapted engineering solutions. Alstom entered the Kazakhstan's railway market in June 2010 together with its Russian partner Transmashholding, by laying the first stone of the EKZ facility.
<sup>1 Ordered by KTZ in 2010
The plant is working on supplying the electric locomotives ordered by KTZ by 20202. Today, 24 KZ8A locomotives are already in operation on Kazakhstan's rail lines, and the KZ4AT has passed its first dynamic tests at the speed of 200 km/h. Earlier this year, Azerbaijan Railways awarded a contract to EKZ to deliver 50 additional KZ8A locomotives to Azerbaijan.
Alstom is a global leader in the world of power generation, power transmission and rail infrastructure and sets the benchmark for innovative and environmentally friendly technologies. Alstom builds the fastest train and the highest capacity automated metro in the world, provides turnkey integrated power plant solutions and associated services for a wide variety of energy sources, including hydro, nuclear, gas, coal and wind, and it offers a wide range of solutions for power transmission, with a focus on smart grids. The Group employs 93,000 people in around 100 countries. It had sales of over €20 billion and booked $\epsilon$ 21.5 billion in orders in 2013/14.
A promoter of sustainable mobility, Alstom Transport develops and markets the most complete range of systems, equipment and services in the railway sector. Alstom Transport manages entire transport systems, including rolling stock, signalling, maintenance and modernisation and infrastructure, and offers integrated solutions. Alstom Transport recorded sales of $\epsilon$ 5.9 billion in the fiscal vear 2013/14. Alstom Transport is present in over 60 countries and employs around 28,300 people.
Virginie Hourdin / Claire Biau - Tel. +33 1 41 49 21 36 / 39 95 [email protected]; [email protected]
Linda Huguet / Justine Rohée (Alstom Transport) : Tel.: +33 1 57 06 10 42 / 18 81 [email protected]; [email protected]
Ekaterina Dobrogorskaya / Yulia Tikhonova (Alstom Russia) : Tel.: +7 916 982 45 17/+7 916 937 48 $25$ [email protected]; [email protected]
Delphine Brault. Anouch Mkhitarian - Tel. +33 1 41 49 26 42 / 25 13 [email protected]: [email protected]
www.alstom.com
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