Siemens Set To Spin-Off €17 Billion Energy Unit

By Staff of Admiral Markets

Access To Financial Markets Made Easy • Sep 25, 2020 at 4:30 AM EDT

The German multinational conglomerate, Siemens AG, is set to spin-off its entire energy business next week.

The German multinational conglomerate, Siemens AG (SIEGY), is set to spin-off its entire energy business next week.

Siemens set to spin-off €17 billion energy unit

The new entity, Siemens Energy, is due to launch on the Frankfurt stock exchange with a valuation of around €17 billion and will be an independent company focused on a variety of products which include:

Steam and gas turbines
Generators
Transformers
Compressors

They will also focus on Wind energy through its 67% stake in Siemens Gamesa Renewable Energy.

Siemens AG is set to keep a stake of around 35.1% in Siemens Energy with 55% of the shares in the new publicly-listed entity going to its shareholders at a ratio of one share for every two Siemens shares. The Siemens pension fund will also keep 9.9%.

The spin-off is largely due to making sure each company has a strict focus. As CEO Joe Kaeser stated in an interview with CNBC: "It's about focus… it's about really focusing on driving an energy technology company forward."

The aim of Siemens Energy is to provide solutions across the entire scope of the energy market including making coal power plants more efficient to save CO2 and driving innovation in green hydrogen and gas turbine technologies, as well as grid stability.

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