Siemens Energy (ENR1n.DE) on Saturday made a €4.05 billion ($4.28 billion) bid for the remaining stake in ailing wind turbine unit Siemens Gamesa (SGREN.MC) in hopes of to eliminate a complex ownership structure that has weighed on its shares.
According to Siemens Energy, the offer of 18.05 euros per share represents a premium of 27.7% compared to the last unaffected closing price of Spain-listed Siemens Gamesa of 14.13 euros on May 17. It is a premium of 7.8 % on Friday’s closing price.
Siemens Energy is facing increasing pressure from shareholders to seek control of Siemens Gamesa (SGRE), in which it holds 67%, a stake it acquired in a spin-off from former parent company Siemens (SIEGn.DE).
This stake has given Siemens Energy little leverage over product delays and operational issues at Siemens Gamesa. The company has issued three profit warnings in less than a year.
“It is crucial that the deteriorating situation at SGRE is stopped as soon as possible and the value-creating repositioning begins quickly,” said Joe Kaeser, Chairman of the Supervisory Board of Siemens Energy.
Earlier this year, sources told Reuters that Siemens Energy was exploring options to acquire the remaining stake in Siemens Gamesa and a deal could be in place by the summer.
Siemens Energy plans to fund up to €2.5 billion of the transaction with equity or equity-like instruments, with a first step being a rights-free capital increase.
The rest would be financed with debt as well as cash, Siemens Energy said, adding it aims to delist Siemens Gamesa. Spanish Stock Exchange regulations allow this once a 75% stake has been reached.
The full integration of Siemens Gamesa will simplify the structure of Siemens Energy and provide a more coherent business model serving legacy energy assets such as coal, transition technologies such as gas and renewable energy sources.
“This transaction comes at a time of great change affecting the global energy industry,” said Christian Bruch, CEO of Siemens Energy. “We are convinced that the current geopolitical developments will not lead to a setback in the energy transition.”
Siemens Energy said the deal will result in cost synergies of up to €300 million annually within three years of full integration, mainly due to cheaper supply chain management, combined administration and joint research and development.
The deal is expected to close in the second half and is expected to generate mid-triple-digit million revenue synergies by 2030, the group said.
Siemens Energy launches $4.3 billion bid for Siemens Gamesa’s remaining stake – SABC News
Source link Siemens Energy launches $4.3 billion bid for Siemens Gamesa’s remaining stake – SABC News