> Pension Funds Insider> Invensys' trustees look at deal that will save scheme
The trustees of the Invensys Pension Scheme can look forward to the £1.7bn sale of Invensys' rail division to Siemens, a move which will wipe out most of the engineering group's bulky pension deficit.
Legal practice Norton Rose has advised the trustees in relation to the negotiation of a payment of £400m to the pension scheme, the establishment of a £225m reservoir trust to provide additional security to the pension scheme, the apportionment of liability from Westinghouse to Invensys plc, and liaised with the Pension Regulator regarding the application for clearance in relation to the transaction.
When the sale is completed - which is expected to be during the second half of 2013 Invensys said it would use £400m of the rail division proceeds to release the scheme of its deficit, which currently stands at being close to £400m.
Peter Ford, partner at Norton Rose said: "This transaction leaves the Invensys Pension Scheme and its member with significantly increased levels of security. The size and scale of the pension scheme meant that it played a key role in this landmark transaction, and that the trustees and their advisers were instrumental in defining the shape of the sale."
Punter Southall, Evercore and PwC provided the trustees with actuarial advice.
Freshfields Bruckhaus Deringer advised Invensys on the transaction and Linklaters advised Siemens.
First published 04.12.12
04 December 2012
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