Siemens Energy Considers Siemens Options

Siemens Energy has stepped up its efforts to seek full integration of its wind turbine business, sources told Reuters. Last week’s profit warnings and falling stock prices revealed flaws in the current ownership structure.

The company is currently working with advisors to find the best way to acquire the remaining 33% stake that Siemens Energy does not yet own at Siemens GAMESA, two people familiar with the matter said. Stated.

Shares of Siemens GAMESA, the world’s largest manufacturer of offshore wind turbines, rose 7.7% in the news [on Thursday], Siemens Energy rose 3.1%.

Citi analysts said in a note following the news that such a deal would be most favorable to the SIEMENS GAMESA stock in the short term.

“But there will be transactions that may allow Siemens Energy to be reassessed over the next few months, from the clearer and more simplified structure of the group,” they wrote.

Christian Bruch, CEO of Siemens Energy, is under pressure to find a way to organize the ownership structure inherited as part of a spin-off from former parent Siemens in 2020.

One pointed out the risk of Siemens Energy, which had to reduce its outlook three times in the last nine months to reflect the downgrade of guidance at the Spanish-listed Siemens GAMESA, until the summer. Said that the deal could be closed.

People say Siemens Energy is still considering the potential impact of acquisitions on balance sheets and investment grade, and one option is to pay in stock rather than cash to avoid raising new capital. He added.

They added that no final decision has been made on this issue and there is no guarantee that the transaction will take place.

Siemens Energy and Siemens GAMESA declined to comment.

Deutsche Bank said in a memo this week that Siemens Energy has a 50% chance of buying a minority shareholder in Siemens GAMESA for € 21 per share. This is equivalent to a bid of € 4.7 billion ($ 5.3 billion).

That’s about one-third the premium of the current price, but Siemens GAMESA’s stock has nearly halved in the last 12 months, the lowest price since mid-2020, and a more affordable full acquisition. It became a price.

SIEMENS GAMESA was founded in 2017 to increase its competitiveness in the fast-growing but highly competitive wind turbine market, with supply chain issues and higher-than-expected costs associated with new product lines in the land sector. Facing

($ 1 = 0.8868 euros)

(Report by Christoph Steitz, additional report by Andres Gonzalez, edited by Jane Merriman)

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