Siemens Energy launches $4.3bn bid to increase stake in wind company
Germany’s Siemens Energy has submitted a €4.05 billion ($4.28bn) bid for the remaining shares in its wind turbine firm Siemens Gamesa, of which it currently owns 67 per cent
Germany’s Siemens Energy has submitted a €4.05 billion ($4.28bn) bid for the remaining shares in its wind turbine firm Siemens Gamesa, which it currently owns 67 per cent.
Siemens Energy said that the bid, launched on 21 May, said that the €18.05 a share bid was a premium of 27.7 per cent over the last unaffected closing €14.13 share price of Siemens Gamesa on 17 May.
Siemens Energy inherited the 67 per cent stake in the wind turbine unit following its spin-off from Siemens in 2020. Increasing its stake in the wind unit will enable Siemens Energy to address operational issues and product delays. The wind energy company has issued three profit warnings in the past 12 months.
“It is critical that the deteriorating situation at Siemens Gamesa is being stopped as soon as possible, and the value-creating repositioning starts quickly,” said Joe Kaesar, supervisory board chairman, Siemens Energy
That stake has given Siemens Energy little influence to deal with product delays and operational problems at Siemens Gamesa. The group has issued three profit warnings in less than a year.
“It is critical that the deteriorating situation at Siemens Gamesa is being stopped as soon as possible, and the value-creating repositioning starts quickly,” Joe Kaeser, Siemens Energy's supervisory board chairman, was quoted in a press statement about the voluntary cash tender offer.
Siemens Energy revealed it is planning to finance €2.5bn of the transaction with equity of equity-like instruments, noting that an initial step could be a capital increase without subscription rights. The remainder would be financed with debt and cash.
Siemens Energy said it is aiming to delist Siemens Gamesa, with Spanish stock market regulations allowing this when an ownership of 75 per cent is reached.
“This transaction comes at a time of major changes affecting global energy,” Christian Bruch, CEO, Siemens Energy, was quoted in the press statement. “Our conviction is that the current geopolitical developments will not lead to a setback to the energy transition.”
In November 2021, Energy & Utilities reported that renewable energy developer Lekela had started commercial operation of its 250MW West Bakr wind project in Egypt. Siemens Gamesa provided and installed the 96 wind turbines for the project.
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