VIENNA, April 28, 2003 – GE Power Systems reported that its offer to purchase Jenbacher AG, a manufacturer of reciprocating engines for power generation, has been accepted.
Over 95 % of Jenbacher’s outstanding shares – thus much more than the required 90 % – were tendered by April 25, 2003, the end of the offer period, paving the way for GE to complete the acquisition of Jenbacher AG.
“When GE launched the offer for Jenbacher shares in February, there were three conditions for a successful transaction: approval by regulators, no adverse change in Jenbacher’s financial condition, and at least 90 % of the shares tendered”, said Rick Stewart, CEO of GE Aero Energy Products, the GE Power Systems business unit that Jenbacher will join. He continued: “With the greater than 90 % acceptance, all of the offer conditions have now been satisfied and we are delighted that our offer has been accepted so strikingly. Despite the global economic uncertainty, we are convinced of the partnership between GE and Jenbacher, and we plan to make Jenbacher GE’s global center of excellence for gas engine products. Combining GE’s sourcing network, sales and service channels with Jenbacher’s existing operations will enable more rapid product development and sales growth, to the benefit of Jenbacher’s employees.”
“The fit between GE Power Systems and Jenbacher will allow us to better serve the distributed power needs of our global customers”, added John G. Rice, President and CEO of GE Power Systems. “By merging Jenbacher’s excellent technology and engineering resources with the global capabilities of GE Power Systems, we will create an even broader portfolio of products and services we can offer for a wide range of clean energy and industrial applications worldwide.”
Earlier this month, GE improved its offer to purchase all of the widely held shares of Jenbacher to ï¿½ 18.10 per share. All of the widely held shares, including those tendered prior to the price improvement, will receive the ï¿½ 18.10 per share price. Those shareholders that have not yet tendered their shares, can tender their shares within 10 trading days from announcement of the results, thus by May 14, 2003; they will also be paid the price of ï¿½ 18.10 per share.
Tracing its roots to the 15th century, Jenbacher (www.jenbacher.com) started manufacturing reciprocating engines in 1948. Today, the company is a manufacturer of gas-fueled reciprocating engines and packaged generator sets, with outputs up to three megawatts. The use of clean natural gas in combination with patented combustion systems enables Jenbacher’s generation packages to meet strictest international emission standards, while offering high levels of efficiency.
About GE Power Systems
GE Power Systems (www.gepower.com) is part of General Electric and one of the world’s suppliers of power generation technology, energy services and management systems, with 2002 revenues of nearly $23 billion. Based in Atlanta, GA, GE Power Systems provides equipment, service and management solutions across the power generation, oil and gas, distributed power and energy rental industries.