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Siemens Energy contemplates stake sale in Indian arm to Siemens AG

Oct 31, 2023

By: BlinkX Research Team

Siemens Energy is exploring the possibility of divesting a substantial portion of its 24% stake in the Indian-listed company Siemens Ltd to its former parent, Siemens AG. This move is being considered to fortify Siemens Energy's financial position, with the current stake valued at approximately $3.5 billion. Such a partial sale would provide a swift means for the German manufacturer of wind and gas turbines to bolster its capital structure, especially as discussions with Berlin and Siemens regarding performance bond guarantees are ongoing.

Siemens AG presently holds a majority 51% stake in Siemens Ltd. Raising this stake could be a strategic maneuver for the group, one that may find more favor with its shareholders compared to extending guarantees to Siemens Energy.

This potential disposal surfaces at a time when Siemens Energy is engaged in discussions with the German government, financial institutions, and Siemens itself, aiming to secure 15 billion euros in guarantees to safeguard substantial industrial projects.