Business
Siemens Energy weighs options for Siemens Gamesa integration -sources
Published by maria gbaf
Posted on January 27, 2022
Global Banking and Finance Review
Company
Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
Published by maria gbaf
Posted on January 27, 2022
By Christoph Steitz
FRANKFURT (Reuters) – Siemens Energy has stepped up efforts to explore a full integration of wind turbine business Siemens Gamesa, sources told Reuters, after profit warnings and share price slumps last week exposed flaws in the current ownership structure.
The company is currently working with advisers to look at options for how to best acquire the remaining 33% stake Siemens Energy does not yet own in Siemens Gamesa, two people familiar with the matter said.
Siemens Energy CEO Christian Bruch is under pressure to find a way to sort out the ownership structure inherited as part of a spin off from former parent Siemens in 2020 that gave him majority ownership in a business but no control.
A deal could materialise by summer, one of the people said, pointing to the risks to Siemens Energy, which has had to cut its outlook three times over the past nine months to reflect guidance downgrades at Spanish-listed Siemens Gamesa.
Siemens Energy is still weighing up the potential impact an acquisition would have on its balance sheet and investment grade rating, the people said, adding that one option would be to pay with stock, rather than cash, to avoid raising fresh capital.
No final decision has been made on the matter and there is no guarantee that a deal will happen, they added.
Siemens Energy and Siemens Gamesa declined to comment.
Deutsche Bank in a note this week said it saw a 50% chance that Siemens Energy would buy out Siemens Gamesa’s minority shareholders at 21 euros per share, which would translate into a 4.7 billion euro ($5.3 billion) bid.
While that would represent a premium of around a third to the current price, Siemens Gamesa’s shares have nearly halved over the past twelve months to their lowest since mid-2020, making a full takeover more affordable, the people said.
Siemens Gamesa, created in 2017 to better compete in the fast-growing but competitive wind turbine market, is facing supply chain issues and higher-than-expected costs related to a new product line in its onshore division.
($1 = 0.8868 euros)
(Reporting by Christoph Steitz; Additional reporting by Andres Gonzalez. Editing by Jane Merriman)
By Christoph Steitz
FRANKFURT (Reuters) – Siemens Energy has stepped up efforts to explore a full integration of wind turbine business Siemens Gamesa, sources told Reuters, after profit warnings and share price slumps last week exposed flaws in the current ownership structure.
The company is currently working with advisers to look at options for how to best acquire the remaining 33% stake Siemens Energy does not yet own in Siemens Gamesa, two people familiar with the matter said.
Siemens Energy CEO Christian Bruch is under pressure to find a way to sort out the ownership structure inherited as part of a spin off from former parent Siemens in 2020 that gave him majority ownership in a business but no control.
A deal could materialise by summer, one of the people said, pointing to the risks to Siemens Energy, which has had to cut its outlook three times over the past nine months to reflect guidance downgrades at Spanish-listed Siemens Gamesa.
Siemens Energy is still weighing up the potential impact an acquisition would have on its balance sheet and investment grade rating, the people said, adding that one option would be to pay with stock, rather than cash, to avoid raising fresh capital.
No final decision has been made on the matter and there is no guarantee that a deal will happen, they added.
Siemens Energy and Siemens Gamesa declined to comment.
Deutsche Bank in a note this week said it saw a 50% chance that Siemens Energy would buy out Siemens Gamesa’s minority shareholders at 21 euros per share, which would translate into a 4.7 billion euro ($5.3 billion) bid.
While that would represent a premium of around a third to the current price, Siemens Gamesa’s shares have nearly halved over the past twelve months to their lowest since mid-2020, making a full takeover more affordable, the people said.
Siemens Gamesa, created in 2017 to better compete in the fast-growing but competitive wind turbine market, is facing supply chain issues and higher-than-expected costs related to a new product line in its onshore division.
($1 = 0.8868 euros)
(Reporting by Christoph Steitz; Additional reporting by Andres Gonzalez. Editing by Jane Merriman)