Siemens, a German multinational corporation, revealed on Wednesday that it intends to complete the demerger of its Indian subsidiary Siemens Ltd in 2025, a year sooner than previously anticipated. Siemens AG says it will buy an 18% interest in Siemens Ltd India from Siemens Energy for €2.1 billion to advance the demerger process.
Siemens’ share in publicly traded Siemens Ltd India would rise from 51% to 69%, while Siemens Energy’s holding would fall from 24% to 6%. Siemens and Siemens Energy want to expedite the unbundling of the business operations of Siemens’ Indian subsidiary, the firm stated in a statement.
The purchase price includes a 15% reduction from the 5-trading-day volume-weighted average price prior to the day of signing. Siemens and Siemens Energy did not separate their companies in India as part of the 2020 spin-off since it was not viable at the time.
As a subsequent step, Siemens and Siemens Energy have decided to make a proposal to Siemens Ltd’s Board of Directors a de-merger of the energy industry. Siemens Energy intends to eventually acquire a majority position in the demerged energy industry. The corporation stated that the demerger will be completed in 2025, which is far sooner than previously expected.
At around 10.22 AM, Siemens was trading 0.29% higher at Rs 3,505.65 per piece against the previous close of Rs 3,495.50 on NSE.
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