Siemens AG announced its intention on November 15 to acquire an 18 percent stake in the Indian joint venture, Siemens Limited, from Siemens Energy, as reported by Reuters.
The proposed acquisition is valued at ₹18,968 crore (2.1 billion euros or $2.28 billion), reflecting a 15 percent discount based on the average price, the company confirmed in a statement. The purchase price aligns with the customary discount of 15 percent on the 5-trading-days volume-weighted average price before the day of signing.
This move follows a previous Reuters report on October 31, revealing Siemens AG’s pursuit of a discounted acquisition. Siemens Energy had been considering selling a portion of its 24 percent stake in the Indian-listed Siemens back to its former parent company, Siemens AG, as part of efforts to strengthen its financial position, according to sources.
The current value of Siemens Energy’s stake stands at approximately $3.4 billion. The potential partial sale is seen as a swift measure by the German manufacturer to reinforce its capital base amid ongoing discussions with the German government, financial institutions, and Siemens itself for guarantees to safeguard substantial industrial projects.
Siemens AG currently holds a 51 percent stake in Siemens, and an increase in this ownership could be a strategic move easier to justify to shareholders than providing assurances to Siemens Energy, according to sources. Siemens Energy is exploring various measures, including potential further asset sales, to strengthen its financial position, following a recent deal to sell its Trench high voltage component division to Triton.
The acquisition by Siemens AG is part of the broader financial restructuring and strategic moves within the Siemens group.
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