Siemens shareholders clear spin-off, listing of energy business

A large majority of the shareholders of German industrial major Siemens AG (ETR:SIE) have approved the planned spin-off and listing of the company’s energy business, including a 67% stake in Siemens Gamesa Renewable Energy SA (BME:SGRE).

Siemens said that the move was cleared by 99.36% of the capital stock represented at the meeting (61.94%), which was held virtually due to the COVID-19 pandemic.

“The spin-off enables us to build two focused companies, both of which will be strong players in their respective sectors. The substantial increase in the share price of Siemens Healthineers since its initial public offering is a gratifying example of how focus adds value,” said Joe Kaeser, President and CEO of Siemens AG.

Upon completion of the spin-off, Siemens Energy AG will be an independent company that offers gas and steam turbines, generators, transformers and compressors, along with wind turbines through its majority stake in Siemens Gamesa. The company had about EUR 29 billion (USD 32.9bn) in revenue for fiscal 2019 as per figures from end-September.

The current Siemens AG will then focus on Digital Industries, Smart Infrastructure and Siemens Mobility.

Siemens Energy’s Capital Market Day will be held on September 1, 2020. The company noted that the securities prospectus will be published some two weeks before the listing, which is planned for September 28, 2020.

(EUR 1.0 = USD 1.133)

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