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Karachi: In a significant move within the energy sector, Siemens AG has finalized the sale of its Energy Business Segment to Siemens Gamesa Renewable Energy (Private) Limited. This transaction, approved by Siemens AG’s Board of Directors, carries a total value of approximately Rs 17.82 billion, based on the latest valuation dated March 31, 2024.
The process leading up to this decision began with an in-principle approval by the Board on March 10, 2023, followed by an official communication to board members on March 13, 2023. The decision was ratified during a board meeting on October 11, 2024, with the majority voting in favor of divesting the Energy Business, now designated as a going concern, to the non-affiliated entity within the Siemens Energy Group.
According to information available from the Pakistan Stock Exchange (PSX), the net book value of the Energy Business at the time of valuation was Rs 17.61 billion. The sale price reflects a slight premium over this book value. The final cash consideration to be received from Siemens Gamesa, along with the determination of any gain or loss from this sale, will depend on the net book value at the Transaction Closure Date and will adhere to the contractual terms agreed upon by both parties.
The completion of this sale is contingent upon receiving the necessary approvals from shareholders and various regulatory bodies.
The transaction underscores a strategic reshuffling within Siemens AG, following its spin-off of the Energy Business in 2020. It marks a pivotal shift as the company divests from a significant part of its portfolio, aligning with broader market trends and internal corporate strategies.