The company plans to fund up to €2.5 billion of the value of the transaction with equity or similar instruments.
Siemens Energy announced this Saturday a voluntary cash tender offer (OPA) for all shares of Siemens Gamesa Renewable Energy (SGRE) it does not yet own, i.e. about 32.9%, with the intention of excluding the company from the listing, as reported by the Siemens energy subsidiary.
It thus offers EUR 18.05 per share, which represents a 27.7% premium compared to the last unaffected closing price of May 17, 2022 of EUR 14.13 per share.
At current market prices, 100% of Siemens Gamesa would be valued at just over EUR 11,279 million, so a 33% bid would be over EUR 3,722 million.
The acquisition financing has been fully underwritten by Bank of America and JP Morgan and, assuming the offer is accepted in full, Siemens Energy plans to finance up to €2.5 billion of the value of the transaction with equity or similar instruments , while the remainder of the operation would be financed with debt and available cash.
In the statement, the company emphasized that the transaction will support management’s efforts to resolve SGRE’s current challenges, and help implement the necessary measures to stabilize the company and unleash its full potential.
In particular, SGRE will benefit from Siemens Energy’s greater involvement in day-to-day operations and its transformation experience, especially in areas such as manufacturing, supply chain and project and customer management.
Upon full integration, the combined Group could benefit from expected cost synergies of up to approximately €300 million per year within three years. In addition, revenue synergies of hundreds of millions of euros are also expected by the end of the decade.
For Siemens Energy CEO Christian Bruch, the integration of Siemens Gamesa represents an “important” step in his strategic roadmap to lead the energy transition.
For his part, the chairman of the supervisory board of Siemens Energy, Joe Kaeser, has stated that the operation is an “important” milestone in the positioning of Siemens Energy as a “driver of the energy transition from fossil energy solutions to sustainable energy”. “The Supervisory Board fully supports the Executive Committee’s plans for the integration of SGRE,” he said.
The rumor of a takeover bid from Siemens Energy for its shareholding had been on the table for some time, but has so far been denied.
Siemens Gamesa was born in 2017 as a result of the merger of Gamesa with the wind energy division of Siemens. Subsequently, the National Securities Market Commission (CNMV) exempted the German group from submitting a takeover bid due to the purpose of the industrial project that the operation had. In 2020, the German multinational increased its stake to 67% after purchasing its 8% stake in Iberdrola for nearly 1,100 million euros, at a price of 20 euros per share.
In recent times, Siemens Gamesa has been particularly affected by the volatility of the economy and the difficulties in launching its 5.X platform, its new large wind turbine, which has caused it to chain a succession of ‘profit warnings’, lowering their expectations. adjust.
Likewise, he has seen a succession of changes at the head of the company, the latest with the appointment of Jochen Eickholt as CEO at the end of March, succeeding Andreas Nauen in the position.
On May 5, the group announced a loss of 780 million euros in the first half of its fiscal year 2022, compared to the ‘red numbers’ of 54 million euros for the same period a year ago.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
