German multinational technology conglomerate Siemens AG is set to acquire an 18% stake in Siemens Ltd. India from Siemens Energy, according to a share purchase agreement. The deal, valued at €2.1 billion in cash, will increase Siemens’ stake in the publicly listed Siemens Ltd. India from 51% to 69%, while Siemens Energy’s stake will decrease from 24% to 6%.
The acquisition is part of Siemens and Siemens Energy’s strategy to accelerate the unbundling of business activities in the Indian subsidiary. The purchase price reflects a customary discount of 15% on the 5-trading-days volume-weighted average price before the signing date.
Roland Busch, President and CEO of Siemens AG, highlighted that the solution is in the best interests of all parties involved and contributes to the future stability and growth of Siemens Energy. The deal also includes indirect financial measures worth €1 billion, allowing third parties to arrange guarantees for Siemens Energy.
Siemens has granted payment deferrals at market conditions worth €250 million, which will serve as collateral for guarantees and support Siemens Energy’s business development and participation in the German energy transition.
Shares of Siemens India are currently trading at Rs 3,489, reflecting a 2.10% increase on the BSE.
