Siemens Energy launches $4.3bn bid to increase stake in wind company

23 May 2022
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.

 

Energy & Utilities Middle East and Africa Market Outlook Report 2022: Out Now!

The coming years promise opening of new avenues within the energy industry. The latest outlook report from Energy & Utilities highlights the power sector outlook with a focus on both, developed regions, as well as emerging markets.

Explore core findings about the business opportunities, regulatory environment in the Middle East’s power market and more about the planned projects and investments in Africa’s emerging utilities markets in this latest release.

E&U Podcast

Subscribe to our Market Talk podcast for the latest on the key issues and trends in the energy and utilities sector

List your business

Create a business listing on the Energy & Utilities markeplace

Sign up for the FREE Energy newsletter

The latest news and analysis sent to your inbox.

Drop Us A Message
I have read, understood and consent to your Privacy Policy