Siemens AG set to acquire 18% stake in Siemens via inter-se transfer at discounted rate of 21%

The acquisition involves 6,41,01,646 shares, resulting in a transaction value of  ₹18,928 crore. This development follows a previous statement in which Siemens AG expressed its intention to enter into a share purchase agreement with Siemens Energy for acquiring the stake in its Indian subsidiary. The agreed purchase consideration was set at €2.1 billion.

Siemens AG and Siemens Energy Holding BV serve as key promoters of Siemens. The upcoming transaction involves an inter-se transfer among these promoter entities. As of the end of September, Siemens AG had relinquished its entire stake in the company, despite its designation as a promoter. Meanwhile, Siemens Energy Holding B.V. retained a 24 percent ownership stake in the firm. 

The share price of Siemens closed at  ₹3,750 per share, up by 2.53% on Friday, December 1. The stock has nearly gained over 11.25% in the month of November 2023.

Siemens AG has put forth a proposition to acquire shares on or after December 8. In line with a prior announcement, Siemens and Siemens Energy have concurred to recommend to the board of Siemens India a demerger of the energy business.

Siemens Energy is set to attain a controlling stake in the demerged energy business. The demerger is slated for completion in 2025, ahead of the initially scheduled timeline.

The engineering and automation major, on Tuesday, reported a 49.8% year-on-year (YoY) jump in net profit at ₹571.6 crore for the fourth quarter that ended September 30, 2023.

According to a regulatory filing, in the same quarter of the previous year, Siemens reported a net profit of ₹381.7 crore. The company’s revenue from operations also saw a noteworthy surge, rising by 24.7% to ₹5,807.7 crore compared to ₹4,657.1 crore in the corresponding period of the preceding fiscal year.

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Updated: 01 Dec 2023, 09:18 PM IST