Siemens Energy considering to pare stake in Indian firm to Siemens

31 Oct 2023 , 01:48 PM

According to sources, Siemens Energy is considering to sell a portion of its 24% share in Indian-listed Siemens Ltd to erstwhile parent Siemens AG in order to strengthen its financial sheet.

The stake is now worth roughly $3.4 billion, and a partial sale would be a rapid solution for the German manufacturer of wind and gas turbines to boost its financial base as negotiations with Berlin and Siemens over performance bond guarantees continue.

Siemens AG currently owns 51% stake of Siemens Ltd, and increasing that holding would be a more readily justified strategic move to the group’s shareholders than extending guarantees to Siemens Energy, according to one of the sources.

The prospective divestment comes as Siemens Energy negotiates a 15 billion euro guarantee with the German government, banks, and Siemens to protect large industrial projects.

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