Siemens AG sells 24 per cent stake in Indian unit for Rs 8,520 crore to group firm

Siemens Aktiengesellschaft, the German conglomerate, sold shares worth over Rs 8,500 crore (US$ 1.21 billion) in its listed Indian subsidiary Siemens Ltd, amounting to about 24 per cent stake, to another group firm Siemens Gas and Power Holding BV.

The parent company of Siemens Ltd, which is listed in India, is Siemens Aktiengesellschaft.

Although, there was no official word from the company, but reports indicated that Siemens AG was in the process of carving out its gas and power business, which had dragged its overall performance, into a separate subsidiary.

As per the block deal data available on the BSE, Siemens Aktiengesellschaft sold 8,54,68,862 shares of Siemens Ltd at an average price of Rs 996.9 (US$ 14.14) apiece.

At this price, the transaction is valued at Rs 8,520 crore (US$ 1.21 billion) and the shares sold in the block deal amount to about 24 per cent stake.

Siemens AG held 71.70 per cent stake in Siemens Ltd, while another group firm held 3.3 per cent stake, taking the total promoter stake to 75 per cent as of March 2020.