Siemens AG intends to buy an 18 per cent stake in its Indian subsidiary, Siemens Ltd, for €2.1 billion in cash, raising its stake to 69 per cent, it said in a statement.
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The stake will be acquired from Siemens Energy, whose stake in Siemens Ltd will reduce to six per cent from 24 per cent now. Siemens has also agreed with Siemens Energy indirect financial measures worth €1 billion that will allow third parties to arrange guarantees for Siemens Energy.
“Siemens AG has taken measures to support the stability of Siemens Energy AG and accelerate separation in India – in the best possible interests of all parties,” the statement said. It added that with the proposed acquisition Siemens and Siemens Energy will accelerate the unbundling of the business activities of the Indian unit. Both the companies will jointly propose to the board of Siemens Ltd to separate the energy business through a demerger.
This is expected to simplify the corporate setup in one of the fastest growing and strategically important markets, it said.
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“For our shareholders, the accelerated demerger of Siemens Ltd India’s energy activities will further sharpen the portfolio focus of Siemens. It also simplifies and strengthens our corporate structure in India, a fast-growing and strategically important market,” Roland Busch, President and Chief Executive Officer of Siemens AG said in the statement.
Shares of Siemens Ltd were up 3.8 per cent at ₹3,546 on the NSE at 12 noon.
