Siemens Energy is reportedly contemplating the sale of a significant portion of its 24% stake in the Indian-listed company Siemens Ltd to its former parent, Siemens AG, in a move aimed at bolstering its financial standing, as per an insider. The current value of this stake stands at approximately $3.5 billion. This potential partial sale would provide the German manufacturer of wind and gas turbines with a swift means to reinforce its capital base while ongoing discussions with the German government and Siemens concerning guarantees for performance bonds are underway.

Both Siemens Energy and Siemens AG have refrained from commenting on the matter. Siemens AG already holds a 51% stake in Siemens Ltd, and increasing this shareholding could prove to be a strategic manoeuvre, more palatable to the group's shareholders compared to issuing guarantees to Siemens Energy, the insider suggested. It is important to note that these deliberations are merely one of the options being considered, and there is no certainty that a transaction will take place, as per the same source.

According to an initial report, Siemens Energy might announce the divestment of its shares in Siemens Ltd as early as this week, citing sources familiar with the situation. This potential sale comes amid Siemens Energy's discussions with the German government, banks, and Siemens to secure 15 billion euros in guarantees to safeguard large-scale industrial projects.

Source: Mint