Siemens AG has indicated that it will likely transfer its remaining 17.1% stake in Siemens Energy to the group’s pension fund, as the company seeks to avoid diluting the value of its shares through a placement.
According to Siemens’ Chief Financial Officer Ralph Thomas, this is the clearest indication yet of the company’s plans for the stake, which is currently valued at 3.36 billion euros ($3.63 billion) and has more than doubled in value year-to-date.
Siemens Energy was spun off from Siemens in 2020, and its shares have experienced significant volatility as the company grappled with issues in its wind turbine business. Siemens CEO Roland Busch had previously stated that the plan was to continue reducing the company’s holding in Siemens Energy based on market conditions.
However, Thomas noted that Siemens “doesn’t want to create additional volatility on the capital market at Siemens Energy,” as the company has “had enough of that recently.” He said the most likely scenario is for Siemens to gradually transfer the remaining stake to its pension fund, which would result in significantly lower transaction costs than a placement on the capital market.
The Siemens pension fund currently holds a 7.7% stake in Siemens Energy. Thomas added that Siemens would also consider any offers for the stake from outside parties, but he cautioned that due to Siemens Energy’s importance to Europe’s energy transition, any sale to an outside investor would need to be carefully evaluated.