February 6 (Renewables Now) - Siemens (ETR:SIE) could find itself forced to launch a buyout bid for Siemens Gamesa Renewable Energy SA (BME:SGRE) should lawyers prove that the German group is failing to fulfill a business integration project linked to the wind power merger from last year, El Espanol reports.
Spanish wind turbine maker Gamesa and Siemens Wind Power formally merged in April 2017, giving German industrial major Siemens a 59% stake in the combined business. Normally a transaction of this type should have been followed by a takeover bid for 100% of the enlarged company, but Siemens succeeded in skipping that step by presenting a business integration plan and earning an exemption from the rule. This left Spanish utility Iberdrola SA (BME:IBE) with an 8% interest in Siemens Gamesa.
Nearly a year later and after two profit warnings, the announcement of a huge restructuring process involving up to 6,000 job cuts globally and successive changes in the company’s management, minority shareholders are now concerned and are looking for a way out.
According to market sources quoted by the newspaper, Iberdrola is reviewing the pact to determine whether Siemens is sticking to the industrial plan. According to the team of lawyers analysing the situation, this might not be the case. If this is proven, the country’s association of minority shareholders of listed companies, AEMEC, would approach market regulator CNMV with a request to lift the exemption and oblige Siemens to kick off a public bid for the remaining shares, El Espanol writes.
The article mentions AllianceBernstein LP, Barclays Bank, Norges Bank and JP Morgan as some of the minority shareholders in Siemens Gamesa.