Siemens AG To Buy Rs 18,928-Crore Stake In India Unit On Dec. 8 Or After
The deal will increase the conglomerate's shareholding in its India unit from 51% to 69%.
Siemens AG will acquire an 18% stake in its India unit at Rs 2,952.86 apiece, which represents a discount of 21% to its closing price on Friday.
The Rs 18,928-crore stake purchase in Siemens Ltd., from Siemens Energy Holding BV, will be completed on or after Dec. 8, the company announced on Friday. The deal was announced in November.
The German parent will buy 6.41 crore shares in an attempt to help in stabilising Siemens Energy's operations and to facilitate its separation from the parent company.
The deal will increase the conglomerate's shareholding in its India unit from 51% to 69%, and reduce Siemens Energy's stake from 24% to 6%.
The per share purchase value represents a discount of 15% over its 60-day trading average, the company said.
"We are also enabling an additional line for customer guarantees, making a strong overall contribution to the future stability and growth of Siemens Energy,” said Roland Busch, president and chief executive officer of Siemens AG.
Shares of Siemens closed 2.67% higher at Rs 3,750 apiece, as compared with a 0.67% rise in the NSE Nifty 50.
