Market value of Siemens Energy spin-off to top EUR 17bn - report

The market value of Siemens AG’s (ETR:SIE) energy business is seen to reach well over EUR 17 billion (USD 19.9bn) after the planned spin-off of the unit is completed and it is listed in Germany, Reuters reports.

Citing an unnamed source close to Siemens, the news agency reports that the consensus forecasts for the value of Siemens Energy stands at EUR 21 billion-22 billion, corresponding to a share price of EUR 28.9-30.25 apiece.

German industrial major Siemens will separate its energy business into an independent company that offers gas and steam turbines, generators, transformers and compressors, along with wind turbines through its 67% ownership in Siemens Gamesa Renewable Energy SA (BME:SGRE). The plan for Siemens is to spin off 55% of the energy unit and keep a direct stake of 35.1% in it, with the Siemens Pension-Trust owning the remaining 9.9%.

Currently, the energy business is involved in the production of gas turbines and transmission systems. According to the report, Siemens will likely cut its stake in it to around 25% over the next 12-18 months.

Siemens Energy’s listing on the Frankfurt stock exchange is scheduled for September 28. Following the spin-off, Siemens AG will focus on Digital Industries, Smart Infrastructure and Siemens Mobility.

(EUR 1.0 = USD 1.168)

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