Siemens AG plans to acquire an additional 18% stake in the India unit from Siemens Energy AG for 2.1 billion euros.
According to the press release, to separate their energy businesses through demerger, Siemens and Siemens Energy will together propose for the appointment of board directors of Siemens India.
After this, Siemens’ stake in Siemens Ltd. India will increase from 51% to 69%. At the same time, Siemens Energy’s stake in Siemens Limited India will reduce from 24% to 6%.
“With the acquisition, Siemens and Siemens Energy will accelerate the expansion of the business activities of Siemens’ Indian subsidiary,” the release said.
This purchase of shares is at 15% customer discount from the volume weighted average price of 5 trading days. According to the information given in the statement, Siemens will not give any new guarantee to Siemens Energy.
Siemens Energy, a company carved out of the German company’s gas and power business, is currently strengthening its finances to offset losses in the Gamesa wind business.
Stock Surge
Siemens shares rose 4.41% to Rs 3,568.8 intraday. On year-to-date basis the company’s shares have risen by 25.57%.
Of the 27 analysts tracking the company, 15 have advised to buy the company’s shares, 6 to hold and 6 to sell.
