Siemens Energy AG is considering selling a substantial part of its 24% stake in a listed Indian affiliate to former parent Siemens AG as part of efforts to shore up its balance sheet, according to people familiar with the matter.
The German turbine maker may announce the divestment of shares in Mumbai-listed Siemens Ltd. as early as this week, some of the people said, asking not to be identified because the information is private. The shares are currently worth about €3.3 billion ($3.5 billion). Siemens already owns 51% of the Indian business.
At the same time,
Siemens is facing pressure from the government to provide loan guarantees that are critical for
Siemens Energy to take on future large projects. The government is now discussing a combination of state-backed guarantees for Siemens Energy flanked by guarantees from Siemens, its largest shareholder, according to people familiar with the matter.
Last week, Siemens Energy confirmed it’s in talks with the government about loan guarantees. It’s been seeking backing worth as much as €16 billion for future projects after Siemens indicated it was no longer willing to help
First Published: Oct 31, 2023 10:39 AM IST