By (Reuters) – French train maker Alstom (EPA:ALSO) said on Monday it had completed the sale of its North American conventional signalling business to Knorr-Bremse for $690 million.
“Closing of the sale completes the execution of the company’s 2 billion euro ($2.2 billion) deleveraging plan,” Alstom said.
It had announced the sale in April as part of its plan to reduce debt by 2 billion euros. It further outlined the plan in May, including a $1 billion rights issue supported by its main shareholders.
Alstom is the world’s second biggest train maker after China’s state-owned CRRC and has contracts on its order books from Britain for its HS2 high-speed railway and for the largest train tender in Danish rail history.
Its cash problems are partly due to inheriting problem contracts after its 2021 acquisition of Bombardier (OTC:BDRBF)’s rail business.
($1 = 0.9043 euros)