Siemens Energy to Debut on Stock Market Monday -- Listing Preview
September 25 2020 - 12:49PM
Dow Jones News
By Giulia Petroni
Siemens Energy AG is set to debut on the Frankfurt stock
exchange on Monday, becoming an independent entity as part of an
overhaul at technology-and-engineering giant Siemens AG.
Here's what you need to know.
--VALUATION: Berenberg estimates the enterprise value of the
German energy company at around 19 billion euros ($22.15 billion),
while Reuters reports consensus estimating the value at between
EUR21 billion and EUR22 billion, according to a source close to the
company--which would correspond to a share price of EUR28.90 to
EUR30.28.
--SHAREHOLDERS: Siemens AG will spin off 55% of its energy
business to shareholders, which includes its gas and power
operations as well as its 67% stake in wind-turbine maker Siemens
Gamesa Renewable Energy SA. The conglomerate will retain a 35.1%
stake in Siemens Energy, with the rest controlled by its pension
unit, and likely further reduce its stake over the next 12 to 18
months.
--STRATEGY: Earlier this month, the company said it aims to
increase profitability and focus on portfolio adjustments while
shifting toward sustainability. Management aims to achieve an
adjusted earnings before interest, taxes and amortization margin
before special items of between 6.5% and 8.5% for fiscal 2023, and
is evaluating initiatives that target more than EUR300 million of
annual gross cost savings. These add up to the already-announced
EUR1 billion savings target until fiscal 2023, compared to fiscal
2018 levels.
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
September 25, 2020 12:34 ET (16:34 GMT)
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