Siemens AG is set to acquire an 18% stake in Siemens India

Siemens AG is poised to purchase an 18% stake in Siemens India for 2.1 billion euros, approximately Rs 3,380 per share. The acquisition will involve obtaining the stake from Siemens Energy.

According to CNBC-TV18, as of the end of the September quarter, Siemens AG currently holds a 47.7% stake in Siemens India, while Siemens Energy owns 24%, according to the company's shareholding data. Following the completion of this deal, Siemens AG's stake in Siemens India is expected to rise to nearly 66%, with Siemens Energy's stake decreasing to 6%.

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Share Purchase Agreement Details:

Siemens AG plans to enter into a share purchase agreement with Siemens Energy for the acquisition, with a purchase consideration of €2.1 billion, as stated in a company release. The purchase price includes a customary 15% discount on the five-trading-day volume-weighted average price preceding the signing day. Notably, Siemens will not provide any new guarantees to Siemens Energy.

Siemens Demerger Proposal:

Additionally, Siemens and Siemens Energy have agreed to propose a demerger of the energy business to the board of Siemens India. In the demerger process, Siemens Energy is set to acquire a controlling stake in the demerged energy business, and the completion is targeted for 2025, earlier than initially planned.