General Electric agrees deal for Wellstream

General Electric Austria has agreed an £800m deal for Wellstream.

General Electric Austria is offering 780p in cash for each Wellstream share and a special divided of 6p per share.

The offer price and the special dividend represent a premium of 29.1% to Wellstream's closing price on 20 September - the last business day prior to Wellstream's announcement that it had received a number of preliminary approaches.

The offer represents a premium of 5.2% to Wellstream's closing price on 10 December.

Wellstream chairman John Kennedy said: "This is an attractive offer which, together with the special dividend, allows shareholders to realise their investment in cash at a price which reflects both our progress since the IPO in 2007 and the potential for further growth.

"Since IPO, we have invested across the business, increasing production capacity significantly and building strategic market positions.

"Wellstream will complement GE's impressive capabilities and the transaction will benefit customers, employees and shareholders alike.

"The board intends to unanimously recommend that Wellstream's shareholders accept the offer."

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