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Siemens spins off energy business
- July 14, 2020
- Steve Rogerson
A large majority of Siemens shareholders have voted to approve the spin-off of the company’s energy business to Siemens Energy. This paves the way for the establishment of an independent company focused on the energy sector.
In the future, the Siemens parent company will concentrate on digital industries, smart infrastructure and mobility.
In total, 61.94 per cent of the capital stock of Siemens entitled to vote was represented at this month’s shareholders’ meeting, which was held as a virtual event due to the coronavirus crisis.
Approval of the spin-off and transfer agreement between Siemens and Siemens Energy was the only item on the agenda. The agreement was approved by a majority of 99.36 per cent of the capital stock represented. The highest number of participants following the extraordinary shareholders’ meeting online was 3870.
“Siemens shareholders’ broad approval of the spin-off of Siemens Energy confirms the managing board’s strategic course for securing the long-term future,” said Joe Kaeser, president and CEO of Siemens. “The spin-off enables us to build two focused companies, both of which will be strong players in their respective sectors. The substantial increase in the share price of Siemens Healthineers since its initial public offering is a gratifying example of how focus adds value. I’m looking forward to the successful future of the Siemens companies.”
Siemens will now drive the further preparations for the listing. The capital market day for Siemens Energy is scheduled for September 1, 2020. The securities prospectus is to be published around two weeks prior to the listing, which is planned for September 28, 2020.
“The managing board and the supervisory board of Siemens agreed early on that the spin-off can unleash Siemens’ full potential,” said Jim Hagemann Snabe, chairman of Siemens’ supervisory board. “Approval by the shareholders confirms our view and lays the basis for the optimal setup of the two future Siemens companies.”
Siemens Energy operates globally along the entire energy value chain, including the service business. The company has about 91,000 employees worldwide. Its products include gas turbines, steam turbines, generators, transformers and compressors. In the area of wind turbines, Siemens Energy’s 67 per cent stake in Siemens Gamesa Renewable Energy makes it a market leader in renewable energies. Siemens Energy generated revenue of about €29bn in fiscal 2019.