Shareholders of Siemens have voted against the company's proposal to sell its low voltage motors and geared motors businesses to its subsidiary Simens Large Drives India.
"The Company had sought the approval of its Members in relation to the aforesaid matter (among other matters) vide the postal ballot notice dated 23rd June, 2023. As an update, as disclosed in our letter dated 28th July, 2023, setting out the voting results of the aforementioned postal ballot, the said Resolution has not been approved by the Members of the Company," Siemens informed the stock exchanges on Friday, July 28.
In May, the company had announced to sell and transfer the low voltage motors and geared motors businesses to its subsidiary for a cash consideration of Rs 2,200 crore. The same would have come in effect from October 1, had the approvals gone through.
The business vertical that was considered for sale, added Rs 1,061 crore revenue and Rs 132 crore profit in FY22. It made up for 7 percent of the company's revenue as well as 9 percent of its profits from operations.
