Siemens Energy mulls all-stock SGRE buyout - report

Source: Siemens Gamesa Renewable Energy SA (www.siemensgamesa.com)

January 27 (Renewables Now) - Siemens Energy AG (ETR:ENR) is considering alternatives to take full control of majority-owned wind turbine maker Siemens Gamesa Renewable Energy SA (BME:SGRE), Reuters reports, quoting sources.

The news agency said that Siemens Energy is currently discussing its options with advisers, including the possibility of buying the 33% interest it does not already have in exchange for company stock rather than cash. In this way, Siemens Energy could avoid the need to raise fresh capital, the report says.

According to one of the quoted insiders, a deal could be reached by the summer of 2022.

Siemens Gamesa is currently facing supply chain-related disruptions, which resulted in higher-than-expected cost inflation during its fiscal first quarter. Coupled with some project delays and ramp-up challenges with a turbine platform, this led to the company reporting an EBIT loss pre PPA and I&R costs of EUR 309 million (USD 351m) for the period. It also adjusted its revenue guidance for the full financial year.

(EUR 1.0 = USD 1.135)

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