Siemens Shareholders Approve Spin-Off Energy Business
By Jack Burke09 July 2020
Siemens shareholders voted to approve the spin-off of the company’s energy business to Siemens Energy AG.
This step paves the way for the establishment of an independent company focused on the energy sector.
The new Siemens Energy has about 91 000 employees worldwide and its products include gas turbines, steam turbines, generators, transformers and compressors. In the area of wind turbines, Siemens Energy’s 67% stake in Siemens Gamesa Renewable Energy makes it a global market leader in renewable energies. According to the Combined Financial Statements of Siemens Energy AG Siemens Energy generated revenue of about €29 billion in fiscal 2019.
“The spin-off is the right strategic decision at the right time,” said Jim Hagemann Snabe, chairman of the Supervisory Board of Siemens AG. “In the future, both companies will be even better able to address global megatrends: The future Siemens AG will rigorously focus on the areas of automation, digitalization, intelligent infrastructure and mobility. Siemens Energy is a trailblazer in shaping the global transformation of energy systems in the transition to renewable energies.”
In total, 61.94% of the capital stock of Siemens AG entitled to vote was represented at the shareholders’ meeting, which was held as a virtual event due to the Coronavirus crisis. Approval of the Spin-off and Transfer Agreement between Siemens AG and Siemens Energy AG was the only item on the meeting agenda. The agreement was approved by a majority of 99.36% 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 AG. “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 Sept. 1, 2020. The securities prospectus is to be published around two weeks prior to the listing, which is planned for Sept. 28, 2020.