One Siemens Energy Share for Every Two Siemens Shares
Siemens published key details of the spin-off of its energy business. Siemens shareholders are to automatically receive one share of Siemens Energy for every two shares of Siemens.
55% of Siemens Energy will be spun off to Siemens shareholders. Depending on the strategic and operational development of the two companies, Siemens intends to further reduce its stake in the new company significantly within 12 to 18 months.
In addition, Siemens has placed itself under a contractual obligation to refrain from exercising a controlling influence over the new company in the future. Subject to approval by the Extraordinary Shareholders’ Meeting, plans call for the spin-off to take place, as announced, by the end of September 2020. The initial listing is to take place on September 28th, 2020.
“Turning Siemens’ energy business into an independent company is a key milestone in the successful execution of our Vision 2020+ strategy program,” said Joe Kaeser, President and CEO of Siemens. “The considerable increase in the value of our healthcare business shows the huge potential we can tap by further sharpening the focus of our company. We’ve now reached a major milestone in the overall realignment that is preparing the Siemens companies for the massive technological transformations that we are anticipating.”
The planned public listing of Siemens Energy will create a strong, focused, global company with operations spanning the entire energy value chain, including the service business. The new company will have about 91,000 employees worldwide. Its products will include, among other things, combined cycle turbines, generators, transformers and compressors.
In the first step, the shareholders of Siemens will hold a 55% stake in the new company. Siemens will hold 35.1%, within which the subsidiary Siemens Beteiligungen Inland (SBI) will hold 12%. A further 9.9% will be held by Siemens Pension-Trust. In the future, Siemens Energy intends to distribute to shareholders annual dividends of between 40% and 60% of net income. When the public listing is completed, the new shares will be automatically transferred to shareholders’ accounts.