Siemens AG (SIEGn.DE) will transfer some of its ownership in Siemens Energy AG (ENR1n.DE) to its pension fund to minimize the writedown it must take after selling its shares.
Siemens Energy’s stock fell by a third less than a week after it warned of further quality issues at Siemens Gamesa (SGREN.MX) just weeks after acquiring the wind turbine unit’s remaining shareholding.
Late Wednesday, Siemens announced it would reduce its direct interest in Siemens Energy, spun from Siemens in 2020, to 25.1% from 31.9%. Wednesday’s closing price valued the 25.1% stake at 3.14 billion euros ($3.42 billion).
“This is a first and visible step, we intend to further reduce the stake in Siemens Energy, step by step,” a Siemens representative said when asked why it stopped at 25.1%, a blocking minority.
Siemens Energy’s main shareholder, Siemens, has been trying to reduce its holding, but share price swings after profit warnings and Siemens Gamesa issues have delayed any significant stake reduction.
At the end of each quarter, Siemens must write down its 25.1% interest, and June 30 is the next critical deadline. Siemens Energy’s share price has fallen 23% since late March.
Based on Wednesday’s closing price, that might mean a 900 million euro writedown.
Siemens Energy warned last week that quality issues at its wind turbine operation would take years to fix, a major blow to one of the world’s largest renewables producers.
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