RUEIL-MALMAISON (dpa-AFX) - Aveva Group plc (AVV.L), and Schneider Electric, in an update on the progress of the proposed Combination of AVEVA and the Schneider Electric industrial software business, confirmed that all outstanding regulatory clearances required ahead of completion of the Combination have now been received, with the exception of the approval of the Committee on Foreign Investments in the United States or 'CFIUS', for which the review procedure is ongoing.
Whilst AVEVA and Schneider Electric are not aware of and do not expect any substantive CFIUS concerns, CFIUS approval is not expected before very late December 2017 at the earliest, and may extend as late as mid-February 2018. Therefore, it is expected that Completion of the Combination will occur at the end of the month of January or February 2018, subject to any unforeseen delays in the CFIUS approval process.
Meanwhile, AVEVA intends to publish a supplementary prospectus duly approved by the Financial Conduct Authority during January 2018. This will contain the audited interim financial statements of the Schneider Electric industrial software business for the six months ended 30 September 2017.
AVEVA is continuing the process of selecting a Chief Executive Officer for the Enlarged Group and will make an announcement on the appointment as soon as practicable.
AVEVA noted that it has recently received a response from Her Majesty's Revenue and Customs or 'HMRC' to an application for clearance related to the expected capital treatment of the 650 million pounds Return of Value proposed to be effected by way of a 'B' share scheme as part of the Combination.
AVEVA intends to have further discussions with HMRC on this matter but considers it appropriate at this stage to draw the uncertainty over the tax treatment of the Return of Value to the attention of its UK shareholders.
Copyright RTT News/dpa-AFX