Siemens India to spinoff energy operations
Siemens Ltd.’s board on Monday approved a proposed demerger of its energy business into a separate unit, the company said in a regulatory filing.
The Indian unit of the German engineering firm Siemens AG also approved the immediate incorporation of a wholly owned unit in Mumbai.
A subsidiary would be incorporated to implement the planned demerger, the company added.
Promoters — including Siemens Aktiengesellschaft, Siemens International Holding, Siemens Energy Holding, and Siemens Energy Aktiengesellschaft — requested the Indian unit’s board to consider and evaluate the demerger.
''The BoD has approved the immediate incorporation of a wholly-owned subsidiary in Mumbai, India (proposed subsidiary), on the basis that the proposed subsidiary may be required if and when the Board decides to implement the aforesaid demerger,'' it said.
The development comes a month after Siemens AG said it will buy an 18% stake in subsidiary Siemens Ltd for €2.1 billion (about Rs 18,955 crore) in cash.
Siemens Ltd is the Indian joint venture between Siemens Energy and its parent Siemens AG.
The transaction would boost Siemens’ stake in Siemens India from the present 51% to 69%, while Siemens Energy’s stake will decrease from 24% to 6%.
Siemens India shares were trading at Rs 4112.30, 5.35% higher on the BSE, on Monday afternoon.
