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

livemint.com:

Siemens announced that Siemens AG, based in Germany, will purchase an 18 percent stake in the company from Siemens Energy Holding BV at a rate of ₹2952.86 per share, on December 1. This price reflects a discount of 21.32 percent compared to the last closing price. 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.