Siemens ups stake in SGRE as Iberdrola exits

Siemens has acquired Iberdrola鈥檚 8.1% stake in turbine manufacturer Siemens Gamesa Renewable Energy (SGRE).

by Craig Richard 5 February 2020

Siemens' acquisition of Iberdrola's stake in SGRE means it will have more than two-thirds of the voting rights in the manufacturer

With Iberdrola divesting from SGRE, Gamesa will now own a 32.9% stake in the manufacturer, with Siemens holding the majority 67.1% stake in the company, which聽merged in 2017

Siemens will place all its shares in SGRE within its new Siemens Energy company. The new unit will incorporate its gas and power business and then be spun off in a public listing.

The companies also signed a cooperation agreement, by which Iberdrola will grant Siemens and SGRE exclusive negotiation rights for wind power and distribution grid projects 鈥渇or a limited period of time鈥.

Siemens acquired Iberdrola鈥檚 8.07% stake for 鈧20/share 鈥 a 32% premium on top of SGRE鈥檚 average share price for the last 30 trading days. The transaction will cost around 鈧1.1 billion and be funded from its own resources.

SGRE stock price opened at 鈧15.86/share on 5 February, up slightly from the 鈧15.76/share price at the previous close.聽

An Iberdrola spokesman told 搖錢樹娛樂城: "The divestment is part of the company鈥檚 asset rotation strategy. Also, with Siemens plans to spin off its energy unit and merge it with Siemens Gamesa, our stake in the resulting company would have been greatly diluted thereby losing its strategic importance."

A Siemens spokesman explained that the company believes SGRE can further increase its potential and value.聽The company stated: "Siemens expects that additional annual savings of up to 鈧100 million can be realised by unwinding the shareholder agreement and through intensified cooperation between Siemens and SGRE, resulting in a net present value of about 鈧900 million."