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Siemens makes offer to increase Indian unit stake

by Emran Hussain on Feb 1, 2011

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A turbine at the Siemens steam turbine and compressor manufacturing facility at Maneja, Vadodara district near Ahmedabad, India. (GETTY)

Siemens has announced that it intends to increase its stake in its publicly listed Indian company Siemens Ltd. from its current stake of about 55% to 75%. The company will offer public shareholders of Siemens Ltd. 930 rupees (US$20.24) per share. In the case of full acceptance of the offer, the German engineering giant said that it would put $1.36 billion on the table. Siemens is expanding its stake with the aim of further developing its business in India.

The offer from Siemens is 28% above the closing price of January 28, 2011 of 728 rupees ($16) and 20% above the minimum offer price of 772 rupees ($17) required by Indian regulations. Pending regulatory approvals, the offer is expected to open on March 25, 2011 and close on April 13, 2011. The shares are traded on the National Stock Exchange of India and the Bombay Stock Exchange. The public offer will be managed by HSBC Securities and Capital Markets Private.

In fiscal 2010 (which ended September 30, 2010), Siemens Ltd. India achieved a revenue of more than 90 billion rupees ($2 billion) and a profit from operations of about 12 billion ($262 million). In fiscal 2010, Siemens Ltd. had approximately 7,500 employees.

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