German technology giant Siemens AG on Friday (December 1) said it is acquiring an 18% stake in Siemens India for ₹18,928 crore from Siemens Energy. The deal was valued at ₹2,952.86 per share.
This strategic move will result in Siemens Energy's stake in Siemens India plummeting from 24% to 6%, while Siemens AG's ownership will increase from 51% to 69%.
This comes after Siemens AG in November this year said it intends to enter into a share purchase agreement with Siemens Energy to acquire an 18% stake in Siemens India Ltd. The purchase consideration for the transaction is €2.1 billion, a statement from the company said.
Siemens and Siemens Energy have agreed to propose to the board of Siemens India a demerger of the energy business. Siemens Energy will ultimately acquire a controlling stake in the demerged energy business. The demerger is proposed to be completed in 2025 — earlier than previously planned.
Siemens has also agreed with Siemens Energy for indirect financial measures worth €1 billion, to allow third parties to arrange guarantees for Siemens Energy. The parent will allow Siemens Energy to use its 5% shareholding in Siemens India worth €750 million, as collateral for guarantees.
In case the collateral is drawn, the parent has committed to buying up to 5% shares in the India unit for the said amount. Additionally, Siemens has also granted payment deferrals at market conditions worth €250 million, which will also be used as collateral for guarantees.
Shares of Siemens Ltd ended at ₹3,755.35, up by ₹99.45, or 2.72%, on the BSE.
