Siemens to Spin Off 55% of Siemens Energy to Shareholders
May 26 2020 - 9:31AM
Dow Jones News
By Kim Richters
Siemens AG on Tuesday said it would spin off 55% of is energy
operations to shareholders as part of a long-awaited plan to list
the business in late September.
The German engineering conglomerate said shareholders will
receive one Siemens Energy share for every two Siemens shares they
hold. While divesting the majority, Siemens will hold a 35.1% stake
in Siemens Energy directly, with the rest controlled by its pension
unit.
The listing of the business, which includes its gas and power
operations as well as its 67% stake in wind-turbine maker Siemens
Gamesa Renewable Energy SA, is scheduled for Sept. 28. It will be
managed separately and independently from Siemens, the company
said.
Siemens expects to further reduce its stake in the business
"significantly" in the 12 to 18 months after the listing.
The move is part of Siemens Chief Executive Joe Kaeser's plan to
transform the company from an industrial conglomerate into a
smaller business. Mr. Kaeser has also overseen the spinoffs of
Siemens Healthineers AG and Siemens Gamesa. He is scheduled to step
down as CEO next year.
Siemens Energy, which has over 90,000 employees, plans to pay
annual dividends in the range of 40% to 60% of the company's net
income. It doesn't plan to pay a dividend for fiscal 2020.
Siemens said the combined energy business had a revenue of 28.80
billion euros ($31.37 billion) in fiscal 2019, while adjusted
earnings before interest, taxes and amortization would be have been
around EUR1.3 billion if EUR300 million in severance charges were
excluded.
After completing the spinoff, Siemens will focus on its Digital
Industries, Smart Infrastructure and Siemens Mobility businesses,
it said.
"Turning Siemens' energy business into an independent company is
a key milestone in the successful execution of our Vision 2020+
strategy program," Joe Kaeser said in a statement.
"The considerable increase in the value of our health-care
business shows the huge potential we can tap by further sharpening
the focus of our company."
Write to Kim Richters at kim.richters@wsj.com
(END) Dow Jones Newswires
May 26, 2020 09:16 ET (13:16 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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