There is news today that Siemens Energy is looking at selling a major portion of its 24% stake in its Indian listed company, Siemens Ltd to its former parent, Siemens AG. This stake sale is a part of Siemens Energy’s effort to tide over some of its financial crisis and shore up the balance sheet
This news is not yet confirmed by any of the companies but grapevine has it that the stake sale will be announced this week. Based on yesterday’s closing and its 51% stake, the shares are worth around $3.5 billion.
World over, shares of Siemens Energy tumbled down yesterday as it has emerged that the company was rescue talks with the German government to secure €15bn of guarantees to shore up its balance sheet. The company expects heavy losses this year after faults were discovered in its newest turbine models.
If the parents are having trouble, can the affiliates be happy? And that’s why today, Siemens on the BSE is right there among the top five losers.
The Indian listed stock does not look too happy; the stock price plummeted down 4.5% to an intraday low at Rs.3275 and is currently trading at Rs.3285 levels. Its 10% LC for the day is at Rs.3087.80.