Alstom closes sale of N.American signalling business to Knorr-Bremse
Adds background from paragraph 3
Sept 2 (Reuters) -French train maker Alstom ALSO.PA said on Monday it had completed the sale of its North American conventional signalling business to Knorr-Bremse KBX.DE 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's BBDb.TO rail business.
($1 = 0.9043 euros)
Reporting by Alban Kacher in Gdansk; Editing by Louise Heavens and Milla Nissi
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