Siemens shareholders vote against sale of low-voltage motors business to parent

economictimes.indiatimes.com:

Siemens Large Drives India, a subsidiary of Siemens AG. On May 19, Siemens had announced the sale for a consideration of Rs. 2,200 crore with effect from 1 st October 2023.

Analysts had termed the sale at a 'steep discount' and against the interest of domestic public shareholders. Nearly 74% of the votes were against the resolution to approve transactions between the company and Siemens Large Drives India, Siemens said in a late night regulatory filing on Friday. «The Company had sought the approval of its Members in relation to the aforesaid matter (amongst other matters) vide the postal ballot notice dated 23rd June, 2023,» Siemens said, adding that, "...as disclosed in our letter dated 28th July, 2023, setting out the voting results of the aforementioned postal ballot, the said Resolution has not been approved by the Members of the Company." The voting started on June 29 and ended July 28.

Over 78% of the promoter and promoter group and public institutions voted against the sale. Public non-institutional shareholders voted 94.1% in favour of the sale. Around 5.9% of votes were cast against the resolution.

For FY 2022, the said business had recorded a revenue from operations of Rs. 1,061 crore and profit from operations of Rs 132 crore equivalent to around 12.5% of Revenue. This represents around 7% of the company’s revenue from operations and around 9% of the company’s profit from operations.