Siemens plans to sell Siemens Energy shares worth 2.5 billion euros (approximately 2.6 billion dollars) in the coming months to fund its 10 billion dollar acquisition of Software manufacturer Altair Engineering.
According to Zhitong Finance APP, Siemens (SIEGY.US) plans to sell Siemens Energy (SMNEY.US) shares worth 2.5 billion euros (approximately 2.6 billion dollars) in the coming months to fund its 10 billion dollar acquisition of Software manufacturer Altair Engineering.
It is reported that Siemens currently holds 17% of Siemens Energy shares. Siemens Chief Financial Officer Ralf Thomas stated that Siemens plans to divest approximately 6% of its shares by the end of September next year. Ralf Thomas added that Siemens will eventually sell all its holdings in Siemens Energy, but is not in a hurry. He stated, "Now it would be unwise to throw away all these shares. We have established some mechanisms and are handling the trends in Siemens Energy's stock price very cautiously."
Earlier this year, Ralf Thomas also stated that Siemens is willing to sell 5% of the approximately 75% shares it holds in Siemens Medical Engineering Company, and based on current market prices, selling this portion of shares would raise about 3 billion euros.
Siemens Energy's stock price retreated on Wednesday due to Siemens' share sale plan. So far this year, Siemens Energy's stock price has more than doubled, as the market is optimistic that the company is expected to resolve the long-standing issues in its Gamesa wind turbine division. The company also raised its mid-term targets last month due to the increasing demand for products supplying Datacenters amid electricity shortages.
When Siemens announced the acquisition of Altair in October, it stated that it plans to fund this transaction through the sale of publicly traded stocks as well as the proceeds from the recent sale of its Innomotics heavy Electric Machine business (sold for 3.5 billion euros). Ralf Thomas stated that after obtaining revenue through transactions such as the sale of Innomotics and Siemens Energy shares, only a small portion of the funds may need to be obtained through issuing Bonds.