Siemens AG Plans to Divest Stake in Siemens Energy AG

Siemens AG (OTC:SIEGY) intends to sell a $2.6 billion stake in Siemens Energy AG (ETR:ENR1n) in the coming months. This sale is part of the company's strategy to fund its $10 billion acquisition of software maker Altair Engineering Inc.

The German engineering conglomerate is planning to divest about 6% of its 17% holding in Siemens Energy by the end of September, according to Chief Financial Officer Ralf Thomas. Siemens had previously spun off the turbine manufacturer in 2020.

The value of Siemens Energy shares has increased by more than four times this year, attributed to the positive outlook regarding the resolution of ongoing issues at its Gamesa wind-turbine unit. Last month, the manufacturer raised its midterm targets due to heightened demand for products that power data centers.

When Siemens announced the acquisition of Altair in October, it stated that the deal would be financed through selling stock in listed entities and from the proceeds of recent divestments, including the €3.5 billion ($3.7 billion) sale of its Innomotics heavy-duty motors operations.

Siemens plans to eventually sell its entire holding in Siemens Energy, but there is no rush, according to Thomas. Earlier this year, the CFO indicated that Siemens is also considering selling 5% of its approximately 75% holding in Siemens Healthineers AG (ETR:SHLG), which could generate around €3 billion ($3.2 billion) based on current market prices. As of Tuesday's close, a 6% stake in Siemens Energy was valued at around €2.5 billion ($2.6 billion).

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