Siemens is set to acquire an 18% stake in Siemens Ltd. India for a purchase price of 2.1 billion euros, as part of a strategy to simplify the corporate structure in one of the fastest-growing markets. Siemens and Siemens Energy will propose a demerger of the energy business to the Board of Directors of Siemens Ltd. India. This move is aimed at accelerating the separation process in India and supporting the stability of Siemens Energy AG.
The proposed share purchase agreement with Siemens Energy would increase Siemens' stake in Siemens Ltd. India from 51% to 69%, while Siemens Energy's stake would decrease from 24% to 6%. The purchase price, totaling 2.1 billion euros, reflects a customary discount of 15% on the 5-trading-days volume-weighted average price before the day of signing.
The acquisition not only brings an immediate cash inflow but also facilitates an additional line for customer guarantees, contributing to the future stability and growth of Siemens Energy. Roland Busch, President and CEO of Siemens AG, emphasized that the solution benefits all parties involved and accelerates the separation of Siemens and Siemens Energy in India.
Furthermore, Siemens and Siemens Energy are proposing a demerger of the energy business of Siemens Ltd. India, aiming for Siemens Energy to ultimately acquire a controlling stake in the demerged energy business. The goal is to complete the demerger by 2025, significantly earlier than initially planned. This move aligns with Siemens' strategy to sharpen its portfolio focus and streamline its corporate structure in India, a strategically vital and rapidly growing market.
(With Agency Inputs)
