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Spanish engineering company Abengoa has sold a 40% share it owned in compatriot IT firm Telvent (Nasdaq: TLVT) to multinational firm Schneider Electric for 421mn euros (US$606mn), or equivalent to US$40 per share, according to separate statements from the Spanish companies.
Competition regulators in Europe and the US must still approve the transaction. Schneider will launch a share offer within the next 10 days to materialize the acquisition and complete it by the third quarter.
Abengoa will use the proceeds to reduce its net debt. The move is part of Abengoa's strategy to focus on its core business, including solar, bioenergy, environmental services and industrial construction.
"With this, the company strengthens its balance sheet... to continue betting on the development of innovative solutions for sustainable development, creating value for its shareholders," Abengoa CEO Manuel Sánchez Ortega said in the company statement.
Telvent, born as an Abengoa subsidiary, was the first Spanish company to be listed on the Nasdaq. Now, it is a leading technology solutions and real-time information company with more than 6,000 professionals in 19 countries.
"With Schneider Electric, Telvent expects to expand its global presence, especially in rapidly developing new economies," according to Telvent CEO Ignacio González Domínguez.