Siemens share price rises over 5% to hit 52-week high; here's why
Siemens share price jumped over 5% to touch 52-week high on Monday's trading session following the news that shareholders rejected the sale of the low-voltage motors division to the parent company. Siemens share price opened at an intraday low of ₹3,902.55 apiece on BSE.
Siemens share price today hit intaday high of ₹4,066.10 per share. In an exchange filing on Friday, the company stated that the company's shareholders had rejected the proposed sale and transfer of the new low-voltage motors and geared motors businesses to Siemens Large Drives India Private Ltd, a subsidiary of Siemens AG.
According to the exchange filing, almost 74% of the votes cast were against the proposal to allow the transactions between the two companies. Also Read: Siemens shareholders reject proposed sale of low voltage and geared motors businesses to parent company The company's board of directors approved the sale and transfer of its low voltage motors and geared motor businesses, together with related customer support operations, to a wholly-owned subsidiary called Siemens Large Drives India, which is a division of Siemens AG, in May.
The agreement, worth ₹2,200 crore, was slated to go into effect on October 1st, 2023. However, there were a few requirements that both sides had agreed upon, such as getting the requisite consents from shareholders, statutory organisations, and regulatory agencies.
The company also stated in an exchange filing in May that the board of directors has decided to consider paying out 100% of the sale consideration as a special dividend at the first board meeting following the completion of the proposed transaction, less any applicable capital gains tax and other applicable taxes, if any. Also Read: Concord Biotech
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