The agenda with 48 resolutions proposes to approve the combination between Alstom and Siemens’ mobility business. Originally presented as a merger of equals, Siemens will become the controlling shareholder of the new Group with 50.67% of the capital at the closing of the transaction and may hold 52% four years later. Siemens will have the control over the Board with 6 out 11 directors appointed by Siemens, including the Chairman, and 4 independent directors appointed by Alstom but agreed by Siemens.
The strategic interest appears to be real but Alstom shareholders should be granted a higher control premium: the implicit control premium only amounts to 13% and, under Proxinvest view, Siemens should pay an additional €1.1 Bln to Alstom shareholders as a minimum in order to increase the premium control up to 30%. The terms of the transaction will allow Siemens to control the main European player and the second world without paying the fair price. Under these conditions, the operation will not be supported by Proxinvest.
The remuneration policy of the Chairman-CEO was strongly contested last year by the shareholders. The company has made significant improvements in terms of disclosure and structure: the achievement rates of each criterion for STI are available and the performance conditions for LTIP are calculated over 3 years. However, vesting can be made in case of underperformance. The post-transaction remuneration policy with Siemens of the future CEO is also on the agenda. It is highly inflationary with a 20% increase of the base salary which also serves to calculate the other elements of remuneration. A negative vote is therefore recommended (resolution 46).
Alstom serves the power generation and transmission markets, and rail transport market. Co.'s activities are divided into four sectors: the Thermal Power Sector (Co. offers power generation solutions using gas or coal to services including plant modernization, maintenance and operational support); the Renewable Power sector offers EPC solutions, turbines and generators, control equipment and maintenance for Hydropower and Wind power activities; the Grid Sector designs and manufactures equipment and turnkey solutions to manage power grids and transmit electricity from the power plant to the large end-user; and the Transport Sector provides rail transport products, systems and services.
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>A very positive conference call on the business activity - The CEO underlined the very positive performance in Q3 (sales of € 2,010m, around +8% organic, orders of € 3,386m, book-to-bill of 1.7x) and the solidity of the order book at € 39.7bn. Global demand remains on an uptrend and we see no reason why Alstom should not end the year at the high end of its forecasts (“for the fiscal year 2018-19, sales are expected to reach around €8 billion and adjusted EBIT margin ...
Item 1: Approve the share consolidation The Board requests shareholder approval to implement a share consolidation on the basis of 19 new ordinary shares for every 20 existing ordinary shares held. The consolidation is intended to maintain comparability, as far as possible, of the Company’s share price before and after the payment of a special dividend of $2.621 per share. The special dividend is equivalent to 5% of the market capitalisation of the Company as at 14 December 2018. The Company has implemented a series of share consolidations, returning funds to shareholders in this way in 2012...
Item 1: Approve Share Buybacks Shareholder approval is being sought to authorise the Company to make market purchases of its ordinary shares following the inclusion of a typographical error in the resolution granting authority at the 2018 AGM. This error meant that the authority granted at that meeting has already expired. As there is currently no authority in place, the Board proposes the standard share repurchase authority for the UK market with period ending until the earlier of 25 October 2019 (being the later date set out in in the resolution granting authority at the 2018 AGM) and the ...
Afin de pouvoir remplir au mieux la mission de surveillance et de protection de l’ensemble des actionnaires qui lui incombe, il nous semblerait préférable que le conseil ne soit pas composé de seulement cinq membres dont deux personnes de la famille du principal actionnaire. La société fait preuve de légèreté dans la transparence des informations communiquées aux actionnaires en matière de rémunération. Par conséquent, la plupart des résolutions référentes aux rémunérations des dirigeants connaitront un recommandations négatives au regard de ce manque de transparence. Dans la même optique, ...
Assemblée sans sujet particulier, à l'exception des réserves émises par Proxinvest concernant les comptes annuels avec son association d'un quitus et l'absence de comptes consolidés. Contactée par Proxinvest, la société nous a indiqué que l'absence de comptes consolidés et de ce fait de résolution pour les approuver était liée au fait que la filiale Festival basée à Madagascar avait été cédée début 2016. Cependant Proxinvest s'interroge puisque dans les annexes des comptes annuels à la page 23, la société présente une filiale : Festiveo. Ainsi la société devrait communiquer des comptes conso...
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