ATLANTA, GEORGIA (February 12, 2003) --- GE Power Systems today took the next step in its planned acquisition of Jenbacher AG, launching a public tender offer for the Austrian-based supplier of reciprocating engines for power generation.
In a joint press conference Rick Stewart, President and Chief Executive Officer of GE Aero Energy Products, and Herbert Liaunig, representing the major shareholders of Jenbacher AG, presented the offer.
In November, GE (NYSE:GE) and a group of major shareholders controlling 55% of the Jenbacher voting rights signed an agreement for the sale of the group's controlling interest in Jenbacher to a wholly-owned subsidiary of GE. Sal. Oppenheim, Cologne, Germany acted as advisors to the major shareholders in the transaction. As the second part of the combined private/public transaction, GE today made the public tender offer in Austria for the remaining Jenbacher shares, at Euro 17.43 per share.
The tender offer is subject to government approvals and other conditions. The transaction is expected to close during the second quarter of this year.
The tender offer is not being made, directly or indirectly, to US persons, or otherwise to persons in the United States, Canada, Japan or Australia.
Jenbacher AG, headquartered in Jenbach, Austria, manufactures reciprocating engines and generator sets for power generation applications, and is recognized globally for its innovations in cogeneration and the utilization of biogas and waste gases. Jenbacher offers products with electrical output from 300 kilowatts to 3 megawatts. GE Power Systems does not currently produce generating equipment below 5 megawatts with the exception of wind and hydroelectric turbines. Upon completion of the acquisition, Jenbacher will become part of GE Aero Energy Products, a unit of GE Power Systems.
"Combining Jenbacher's highly regarded technology and engineering resources with GE's global capabilities will enable us to offer an even broader portfolio of products and services for our distributed power customers worldwide," said John Rice, President and CEO of GE Power Systems.
The proposed acquisition builds on an existing relationship between GE Power Systems and Jenbacher. In 1999, GE and Jenbacher signed a distribution agreement naming GE Distributed Power as Jenbacher's exclusive distributor in North and South America for natural gas engines, generator sets, and cogeneration systems. Stewart said, "The proposed acquisition represents an extension of that relationship."
Liaunig welcomed the takeover offer by GE Power Systems. "It is a great opportunity for Jenbacher to join forces with a global player like GE Power Systems. The agreement combines the experience and expertise of both companies," he said.
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