LONDON--Invensys PLC (ISYS.LN), a technology solutions company, said Wednesday it will dispose of Invensys Rail to Siemens for GBP1.74 billion.

MAIN FACTS:

-Completion expected in second quarter of calendar 2013 conditional on Invensys shareholder approval, U.K. Pensions Regulator approval, certain anti-trust consents and lending bank approval

-Proposed return of cash to shareholders of 625 million pounds.

-Significant run-rate cost savings of GBP25 million per annum by the end of FY2014 based on a simplified organisational structure.

-As well as providing shareholders with an immediate cash return, this transaction enables the Group to create a long term pension solution and therefore increased financial flexibility going forward.

-The agreements reached with the Trustee of the Invensys U.K. Pension Scheme for the GBP400 million contribution and the GBP225 million Reservoir Trust will result in the cessation of the current deficit reduction payments of GBP40-47 million per annum and anticipate that no further contributions will be payable into the Scheme.

-Shares at 1642 GMT up 10%, at 242 pence, valuing the company at GBP1.7 billion.

-Write to Mark Shapland at mark.shapland@dowjones.com

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