FILE PHOTO: A model of a wind turbine with the Siemens Gamesa logo will be exhibited outside the Annual General Meeting on June 20, 2017 in Zamudio, Spain. REUTERS / Vincent West
May 18, 2021
By Isla Binnie, Christoph Steitz and Arno Schuetze
MADRID (Reuters) – Siemens Energy announced Tuesday that there are currently no plans to buy the third of wind turbine maker Siemens Gamesa that it does not yet own.
The Spanish Securities and Exchange Commission stopped trading shares in Siemens Gamesa after the Expansion newspaper announced that Siemens AG had hired Morgan Stanley to examine options for the Spain-based company, including a possible takeover and exit from the market.
According to the expansion, Siemens AG had discontinued the bank through Siemens Energy, which holds 67% of the shares in Siemens Gamesa. The conglomerate holds 35% directly in Siemens Energy and a further 10% through its pension fund.
The newspaper said that Siemens had also hired Deutsche Bank to provide an independent assessment.
Hours after the shares were suspended, Siemens Energy wrote in a letter to the Spanish regulator that the company was reviewing its entire portfolio on a regular basis, including its stake in Siemens Gamesa.
“Although we can of course not rule out a scenario in the future, we can confirm that SIEAG (Siemens Energy) is currently not working on a takeover offer in relation to SGRE (Siemens Gamesa),” said the letter, adding that none of the banks mentioned were been commissioned.
In the current market valuations, the 33% stake in Siemens Gamesa that Siemens Energy does not yet own amounts to around 5.7 billion euros.
Citi analysts said in a statement triggered by the newspaper report that they would prefer Siemens Energy to cut its stake to just over 50% to free up money for growth, including hydrogen.
Siemens Energy shares fell after gaining up to 4% on the news, while Siemens Gamesa shares rose more than 3.5% after the suspension was lifted.
Christian Bruch, CEO of Siemens Energy, said earlier this month it was too early to talk about buying the rest of the Siemens Gamesa, but that would become a problem at some point.
Siemens Gamesa was founded in 2017 through the merger of the Spanish Gamesa and the then wind business of Siemens.
($ 1 = 0.8191 euros)
(Reporting by Isla Binnie in Madrid, Christoph Steitz and Arno Schuetze in Frankfurt; additional reporting by Emma Pinedo in Madrid and Alexander Hübner in Munich; editing by Jan Harvey and David Evans)
This article originally appeared on www.oann.com