Siemens AG plans to pay Siemens Energy $2.28 billion, or 15% less than their average price, to acquire an 18% stake in Siemens Ltd, its joint venture in India.
"The purchase price reflects a customary discount of 15 per cent on the 5-trading-days volume-weighted average price before the day of signing," said Siemens AG in a statement, according to a report in news agency Reuters.
At Rs 3,499.95, Siemens Ltd. shares were last seen trading 2.39 percent higher today. With a market capitalization (m-cap) of Rs 1,24,640.31 crore, the company's turnover at this pricing was Rs 12.24 crore.
This move follows the news agency's earlier revelation this month that Siemens AG is requesting a discount from Siemens Energy in order to obtain shares in their joint venture, Siemens Ltd., in India. Then, it was stated that Siemens AG was hoping for a 15% discount. Since 2020, the asset's value has increased by over 100%.
In order to increase liquidity, Siemens Energy was considering selling a sizable portion of its 24% ownership in Siemens Ltd., of which Siemens AG currently holds 51%. Siemens Energy's share will drop to 6% following the transaction.
Siemens AG split off Siemens Energy, while Siemens Ltd., the Indian division, stayed part of Siemens AG. Siemens Energy and Siemens AG have an ownership agreement that prohibits Siemens Energy from selling any shares in Siemens Ltd.
Discussions over selling a stake in Siemens Ltd. are taking place at the same time as Siemens Energy is requesting project-related guarantees worth billions of euros from the German government, banks, and Siemens AG, which will keep a direct 25.1% stake after the spin-off.
